The ROI Revolution Blog

Facebook Advertising Success

February 23, 2010

Facebook Logo.gifJust how big is Facebook, really?

According to TechCrunch, big enough to encroach on Yahoo's position of "third largest Web property in the world", trailing none other than Google (#1) & Microsoft (#2).

In the U.S., Facebook already has the second highest number of unique visitors per month - surpassing Yahoo for the first time in January. Compete.com also reports that of all time spent online in January, 11.6% was on Facebook, compared to less than 5% on Yahoo and Google each.

What does this mean to you?

Well, I don't have the answer to that question, but I can tell you what it now means to some of our clients for whom we've recently started advertising on Facebook --> more qualified customer leads + a desirable cost = more $$$ for them.

The following story is about a lead generation client (Client A, for anonymity), but Facebook would certainly be worth testing if you're in an e-commerce space too.

We created Client A's Facebook account back on January 26. He's a local advertiser, only seeking clients within a close radius of a heavily populated metro, so we set the Facebook geo-targeting to just 10 miles around his city.

Within 18 days his campaign spent just over $500, generating almost 600 clicks, but these numbers don't tell the whole story yet:

Facebook Stats1.gif

When we dig into our Google Analytics reporting for Client A's Facebook PPC traffic, we can see that his $500 in spend produced 11 highly valuable customer leads:

GA Visits + Leads2.gif

By highly valuable, I mean that Client A knows his customer lifetime value and has been able to determine that each new customer lead is worth $600 to him.

So for a ~$500 cost, with 11 new customer leads worth $6,600 (11 x $600), we're talking about a superior ROI from Facebook in just 18 days!

It's important to note here that Facebook is only producing 5.5% of the overall leads from our top 5 traffic sources, so it's not going to replace Google AdWords anytime soon. Facebook is however, turning out to be a solid supplemental lead source for Client A.

Tips for setting up a Facebook campaign

1. Track your conversions with a reporting service like Google Analytics.
2. Utilize Facebook's demo/geographic targeting to focus on a niche audience.
3. Set your bid price within Facebook's suggested CPC bid range.
4. Use a captivating image in your ad (you can combine an image with text).
5. If you generate a strong impression share initially, but then it trends downward over time, you should rotate new ad creatives to keep a fresh message in front of your audience's eyes.
6. If you are unable to generate any substantial impression share at all, then try experimenting with different or fewer demographic segments. You can also try targeting a larger geographic area to boost your ads' reach.

Facebook advertising is included in our paid search management service, get the full story on what we can do for you.

Reblog this post [with Zemanta]

Take the next step. Ecommerce retailers spending at least $500/mo. in AdWords qualify for a free 20-minute Google AdWords account review.

Comments

Ian Eisenberg said:

Hi, thank you very much. good job.

February 23, 2010 8:06 PM

big g said:

Interesting article, am thinking more and more about what Facebook paid ads can do for me.

Lookign fwd to what other people experiences have been like and what the major considerations are.

February 24, 2010 4:29 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ big g: Thanks for your comment - you can find more information about Facebook advertising at http://www.facebook.com/advertising.

February 24, 2010 9:44 AM

Kenneth Dreyer said:

Hi there,

Good article. I have an non-related question: In the image showing all traffic sources, how did you get it to show the number of conversions in the column next to the percentage?

Best regards

February 24, 2010 10:30 AM

Jon said:

Very topical post Ben...!

With all the FB hype recently, I feel like the lone doubter regarding FB as an immediately viable advertising source that can suddenly out perform others in the marketplace. I hope you dont mind another opinion! ;)

My own FB experience has been one of low CPC but poor conversion and more of branding benefit.

E-comm results have generally been poor and resulted in budget allocation moving to other campaigns based around product search.

IMHO unless companies are nurturing the social opportunities completely with fan pages and posting promotions then Facebookers are just not in shopping mode... they're hanging out with friends.

Cheers,
Jon

P.S. Quick note: your ROI assumes a 100% conversion of leads into customers.

February 24, 2010 10:50 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Kenneth: That is an excellent question. There is a tool called the Google Analytics Report Enhancer that will show the number of conversions in your GA reports. If you go to the following blog post, you'll find instructions for installing this tool:

http://tinyurl.com/ReportEnhancer

All the best.

February 24, 2010 11:03 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Jon: Thanks for your reply! We're indeed seeing wins on Facebook in the lead generation space - which is obviously a very different type of sell than E-commerce. So you're right to point out that our ROI depends on the conversion rate of leads into customers (except not 100% in this case), which we're still waiting for confirmation on from the client.

One important number that I didn't share in the post is the actual sale price at ~$3,000. So based on the client's historical back-end conversion rates, they've calculated that a PPC lead (from Google, Yahoo, & MSN until now) averages out to be worth $600 whether it converts or not.

The good news is that we just reached 20 Facebook leads at a cost of $840 (Jan 26-Feb 23), so the ads are definitely generating a response at a healthy cost-per-lead! Now we'll just have to monitor and see if the regular back-end conversion rates hold true for Facebook leads too.

I fully agree with you that Facebook users are not actively shopping, but more so hanging out with friends. The key is to try and reach a very niche market with regular, fresh messaging, like you said "companies [need to be] nurturing the social opportunities completely with fan pages and posting promotions" - excellent advice.

All the best - Ben.

February 24, 2010 11:27 AM

Cyborg Superman said:

We tested targeted ads on FB and had similar experiences as Jon. Although perhaps we were too quick to judge. Now you've got me considering lifetime value. Good post.

March 3, 2010 4:00 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Cyborg Superman: Awesome online alias. Let us know how any future FB experiences pan out for you, especially if you're testing again in the e-commerce space. Cheers - Ben.

March 3, 2010 4:28 PM

MickG said:

Great blog post. Being an adwords advocate and user for over 7 years, I am happy to admit that Facebook advertising is great and is working well, both for me, and my clients. If Adwords works on "WHAT" - then Facebook works on "WHO". Being able to target accurately based on demographics is a massive opportunity. I'm enjoying the variety that a tandem Adwords-Facebook approach brings.

March 11, 2010 4:02 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@MickG: Thanks for your reply. I'm glad to hear that you're also having success with an AdWords+Facebook 1,2 combination. Your AdWords "WHAT" | Facebook "WHO" analogy is a perfect one line summary of Google and FB advertising.

I would also view the Google Content Network as working on the "WHO"...if you haven't already (I'm guessing you have :-), be sure to check out the Google Ad Planner Tool to find laser-targeted placements and reach your "WHO" on Google's Content Network. In the tool, demographics and much more criteria are included in your search for highly relevant AdSense-opted sites.

All the best,
Ben

March 11, 2010 8:43 AM

Alex said:

Great stuff. I mention the blog article on LinkedIn: http://bit.ly/d7My9Y

March 17, 2010 6:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Alex: Thanks! I hope it can help motivate advertisers out there to test FB in a smart way.

March 19, 2010 2:17 PM

Digby said:

Typical advertising company spin.

I think Facebook ads are great.
But the cost per click is just way out of line. They suggest that I bid 90 cents a click to get shown!

That is madness.
Imho more like 5 cents a click would be viable.

Only lawyers offering to do Asbestos claims could justify those sort of costs, or BMW dealers.

August 12, 2010 8:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ Digby:

Thanks for your comment. I definitely understand your take on the CPC that we were getting at $0.86. If you're in an industry with a low transaction value, then you're right, that kind of CPC is going to need a really high accompanying conversion rate to hit your profit margins.

However, in an industry such as those you suggested (of which our client belongs to), I'd be confident spending even more per-click than $0.86 because of the potential pay off. For us, it boils down to managing "what you put in the machine" and "what it gives you back."

Since I originally wrote the post we've had month-over-month lead increases from Facebook at a lower cost-per-lead (CPA). Check it out, right now we're loving Facebook for this client:

Jan: 3 leads @ $50.00
Feb: 20 leads @ $51.00
Mar: 12 leads @ $72.50
Apr: 14 leads @ $64.29
May: 14 leads @ $66.41
Jun: 20 leads @ $45.00
Jul: 46 leads @ $17.16
Aug 1-10: 8 leads @ $37.50

If you're thinking about using Facebook, try this nifty little test that asks questions about the business model and helps you determine if FB is a good fit: www.isfacebookforme.com.

August 13, 2010 6:14 AM

Susan said:

Facebook ads can be useful at time but some things need to be take care while placing ads.
Check this out.
How to target your audience using facebook ads

August 20, 2010 3:09 PM

Mark said:

Great Post not sure if we need to update any of the stats as it has been 12 months since your first post & i would like to know if you know where we could get the latest results on who is now top of the top 3 listed above. My gut feel tells me facebook must be pretty close to taking position 1!

Great Post please keep it going with updated results & outcomes.

January 29, 2011 11:31 PM

Ian Eisenberg said:

Hi, thank you very much. good job.

February 23, 2010 8:06 PM

big g said:

Interesting article, am thinking more and more about what Facebook paid ads can do for me.

Lookign fwd to what other people experiences have been like and what the major considerations are.

February 24, 2010 4:29 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ big g: Thanks for your comment - you can find more information about Facebook advertising at http://www.facebook.com/advertising.

February 24, 2010 9:44 AM

Kenneth Dreyer said:

Hi there,

Good article. I have an non-related question: In the image showing all traffic sources, how did you get it to show the number of conversions in the column next to the percentage?

Best regards

February 24, 2010 10:30 AM

Jon said:

Very topical post Ben...!

With all the FB hype recently, I feel like the lone doubter regarding FB as an immediately viable advertising source that can suddenly out perform others in the marketplace. I hope you dont mind another opinion! ;)

My own FB experience has been one of low CPC but poor conversion and more of branding benefit.

E-comm results have generally been poor and resulted in budget allocation moving to other campaigns based around product search.

IMHO unless companies are nurturing the social opportunities completely with fan pages and posting promotions then Facebookers are just not in shopping mode... they're hanging out with friends.

Cheers,
Jon

P.S. Quick note: your ROI assumes a 100% conversion of leads into customers.

February 24, 2010 10:50 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Kenneth: That is an excellent question. There is a tool called the Google Analytics Report Enhancer that will show the number of conversions in your GA reports. If you go to the following blog post, you'll find instructions for installing this tool:

http://tinyurl.com/ReportEnhancer

All the best.

February 24, 2010 11:03 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Jon: Thanks for your reply! We're indeed seeing wins on Facebook in the lead generation space - which is obviously a very different type of sell than E-commerce. So you're right to point out that our ROI depends on the conversion rate of leads into customers (except not 100% in this case), which we're still waiting for confirmation on from the client.

One important number that I didn't share in the post is the actual sale price at ~$3,000. So based on the client's historical back-end conversion rates, they've calculated that a PPC lead (from Google, Yahoo, & MSN until now) averages out to be worth $600 whether it converts or not.

The good news is that we just reached 20 Facebook leads at a cost of $840 (Jan 26-Feb 23), so the ads are definitely generating a response at a healthy cost-per-lead! Now we'll just have to monitor and see if the regular back-end conversion rates hold true for Facebook leads too.

I fully agree with you that Facebook users are not actively shopping, but more so hanging out with friends. The key is to try and reach a very niche market with regular, fresh messaging, like you said "companies [need to be] nurturing the social opportunities completely with fan pages and posting promotions" - excellent advice.

All the best - Ben.

February 24, 2010 11:27 AM

Cyborg Superman said:

We tested targeted ads on FB and had similar experiences as Jon. Although perhaps we were too quick to judge. Now you've got me considering lifetime value. Good post.

March 3, 2010 4:00 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Cyborg Superman: Awesome online alias. Let us know how any future FB experiences pan out for you, especially if you're testing again in the e-commerce space. Cheers - Ben.

March 3, 2010 4:28 PM

MickG said:

Great blog post. Being an adwords advocate and user for over 7 years, I am happy to admit that Facebook advertising is great and is working well, both for me, and my clients. If Adwords works on "WHAT" - then Facebook works on "WHO". Being able to target accurately based on demographics is a massive opportunity. I'm enjoying the variety that a tandem Adwords-Facebook approach brings.

March 11, 2010 4:02 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@MickG: Thanks for your reply. I'm glad to hear that you're also having success with an AdWords+Facebook 1,2 combination. Your AdWords "WHAT" | Facebook "WHO" analogy is a perfect one line summary of Google and FB advertising.

I would also view the Google Content Network as working on the "WHO"...if you haven't already (I'm guessing you have :-), be sure to check out the Google Ad Planner Tool to find laser-targeted placements and reach your "WHO" on Google's Content Network. In the tool, demographics and much more criteria are included in your search for highly relevant AdSense-opted sites.

All the best,
Ben

March 11, 2010 8:43 AM

Alex said:

Great stuff. I mention the blog article on LinkedIn: http://bit.ly/d7My9Y

March 17, 2010 6:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Alex: Thanks! I hope it can help motivate advertisers out there to test FB in a smart way.

March 19, 2010 2:17 PM

Digby said:

Typical advertising company spin.

I think Facebook ads are great.
But the cost per click is just way out of line. They suggest that I bid 90 cents a click to get shown!

That is madness.
Imho more like 5 cents a click would be viable.

Only lawyers offering to do Asbestos claims could justify those sort of costs, or BMW dealers.

August 12, 2010 8:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ Digby:

Thanks for your comment. I definitely understand your take on the CPC that we were getting at $0.86. If you're in an industry with a low transaction value, then you're right, that kind of CPC is going to need a really high accompanying conversion rate to hit your profit margins.

However, in an industry such as those you suggested (of which our client belongs to), I'd be confident spending even more per-click than $0.86 because of the potential pay off. For us, it boils down to managing "what you put in the machine" and "what it gives you back."

Since I originally wrote the post we've had month-over-month lead increases from Facebook at a lower cost-per-lead (CPA). Check it out, right now we're loving Facebook for this client:

Jan: 3 leads @ $50.00
Feb: 20 leads @ $51.00
Mar: 12 leads @ $72.50
Apr: 14 leads @ $64.29
May: 14 leads @ $66.41
Jun: 20 leads @ $45.00
Jul: 46 leads @ $17.16
Aug 1-10: 8 leads @ $37.50

If you're thinking about using Facebook, try this nifty little test that asks questions about the business model and helps you determine if FB is a good fit: www.isfacebookforme.com.

August 13, 2010 6:14 AM

Susan said:

Facebook ads can be useful at time but some things need to be take care while placing ads.
Check this out.
How to target your audience using facebook ads

August 20, 2010 3:09 PM

Mark said:

Great Post not sure if we need to update any of the stats as it has been 12 months since your first post & i would like to know if you know where we could get the latest results on who is now top of the top 3 listed above. My gut feel tells me facebook must be pretty close to taking position 1!

Great Post please keep it going with updated results & outcomes.

January 29, 2011 11:31 PM

Ian Eisenberg said:

Hi, thank you very much. good job.

February 23, 2010 8:06 PM

big g said:

Interesting article, am thinking more and more about what Facebook paid ads can do for me.

Lookign fwd to what other people experiences have been like and what the major considerations are.

February 24, 2010 4:29 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ big g: Thanks for your comment - you can find more information about Facebook advertising at http://www.facebook.com/advertising.

February 24, 2010 9:44 AM

Kenneth Dreyer said:

Hi there,

Good article. I have an non-related question: In the image showing all traffic sources, how did you get it to show the number of conversions in the column next to the percentage?

Best regards

February 24, 2010 10:30 AM

Jon said:

Very topical post Ben...!

With all the FB hype recently, I feel like the lone doubter regarding FB as an immediately viable advertising source that can suddenly out perform others in the marketplace. I hope you dont mind another opinion! ;)

My own FB experience has been one of low CPC but poor conversion and more of branding benefit.

E-comm results have generally been poor and resulted in budget allocation moving to other campaigns based around product search.

IMHO unless companies are nurturing the social opportunities completely with fan pages and posting promotions then Facebookers are just not in shopping mode... they're hanging out with friends.

Cheers,
Jon

P.S. Quick note: your ROI assumes a 100% conversion of leads into customers.

February 24, 2010 10:50 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Kenneth: That is an excellent question. There is a tool called the Google Analytics Report Enhancer that will show the number of conversions in your GA reports. If you go to the following blog post, you'll find instructions for installing this tool:

http://tinyurl.com/ReportEnhancer

All the best.

February 24, 2010 11:03 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Jon: Thanks for your reply! We're indeed seeing wins on Facebook in the lead generation space - which is obviously a very different type of sell than E-commerce. So you're right to point out that our ROI depends on the conversion rate of leads into customers (except not 100% in this case), which we're still waiting for confirmation on from the client.

One important number that I didn't share in the post is the actual sale price at ~$3,000. So based on the client's historical back-end conversion rates, they've calculated that a PPC lead (from Google, Yahoo, & MSN until now) averages out to be worth $600 whether it converts or not.

The good news is that we just reached 20 Facebook leads at a cost of $840 (Jan 26-Feb 23), so the ads are definitely generating a response at a healthy cost-per-lead! Now we'll just have to monitor and see if the regular back-end conversion rates hold true for Facebook leads too.

I fully agree with you that Facebook users are not actively shopping, but more so hanging out with friends. The key is to try and reach a very niche market with regular, fresh messaging, like you said "companies [need to be] nurturing the social opportunities completely with fan pages and posting promotions" - excellent advice.

All the best - Ben.

February 24, 2010 11:27 AM

Cyborg Superman said:

We tested targeted ads on FB and had similar experiences as Jon. Although perhaps we were too quick to judge. Now you've got me considering lifetime value. Good post.

March 3, 2010 4:00 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Cyborg Superman: Awesome online alias. Let us know how any future FB experiences pan out for you, especially if you're testing again in the e-commerce space. Cheers - Ben.

March 3, 2010 4:28 PM

MickG said:

Great blog post. Being an adwords advocate and user for over 7 years, I am happy to admit that Facebook advertising is great and is working well, both for me, and my clients. If Adwords works on "WHAT" - then Facebook works on "WHO". Being able to target accurately based on demographics is a massive opportunity. I'm enjoying the variety that a tandem Adwords-Facebook approach brings.

March 11, 2010 4:02 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@MickG: Thanks for your reply. I'm glad to hear that you're also having success with an AdWords+Facebook 1,2 combination. Your AdWords "WHAT" | Facebook "WHO" analogy is a perfect one line summary of Google and FB advertising.

I would also view the Google Content Network as working on the "WHO"...if you haven't already (I'm guessing you have :-), be sure to check out the Google Ad Planner Tool to find laser-targeted placements and reach your "WHO" on Google's Content Network. In the tool, demographics and much more criteria are included in your search for highly relevant AdSense-opted sites.

All the best,
Ben

March 11, 2010 8:43 AM

Alex said:

Great stuff. I mention the blog article on LinkedIn: http://bit.ly/d7My9Y

March 17, 2010 6:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Alex: Thanks! I hope it can help motivate advertisers out there to test FB in a smart way.

March 19, 2010 2:17 PM

Digby said:

Typical advertising company spin.

I think Facebook ads are great.
But the cost per click is just way out of line. They suggest that I bid 90 cents a click to get shown!

That is madness.
Imho more like 5 cents a click would be viable.

Only lawyers offering to do Asbestos claims could justify those sort of costs, or BMW dealers.

August 12, 2010 8:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ Digby:

Thanks for your comment. I definitely understand your take on the CPC that we were getting at $0.86. If you're in an industry with a low transaction value, then you're right, that kind of CPC is going to need a really high accompanying conversion rate to hit your profit margins.

However, in an industry such as those you suggested (of which our client belongs to), I'd be confident spending even more per-click than $0.86 because of the potential pay off. For us, it boils down to managing "what you put in the machine" and "what it gives you back."

Since I originally wrote the post we've had month-over-month lead increases from Facebook at a lower cost-per-lead (CPA). Check it out, right now we're loving Facebook for this client:

Jan: 3 leads @ $50.00
Feb: 20 leads @ $51.00
Mar: 12 leads @ $72.50
Apr: 14 leads @ $64.29
May: 14 leads @ $66.41
Jun: 20 leads @ $45.00
Jul: 46 leads @ $17.16
Aug 1-10: 8 leads @ $37.50

If you're thinking about using Facebook, try this nifty little test that asks questions about the business model and helps you determine if FB is a good fit: www.isfacebookforme.com.

August 13, 2010 6:14 AM

Susan said:

Facebook ads can be useful at time but some things need to be take care while placing ads.
Check this out.
How to target your audience using facebook ads

August 20, 2010 3:09 PM

Mark said:

Great Post not sure if we need to update any of the stats as it has been 12 months since your first post & i would like to know if you know where we could get the latest results on who is now top of the top 3 listed above. My gut feel tells me facebook must be pretty close to taking position 1!

Great Post please keep it going with updated results & outcomes.

January 29, 2011 11:31 PM

Ian Eisenberg said:

Hi, thank you very much. good job.

February 23, 2010 8:06 PM

big g said:

Interesting article, am thinking more and more about what Facebook paid ads can do for me.

Lookign fwd to what other people experiences have been like and what the major considerations are.

February 24, 2010 4:29 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ big g: Thanks for your comment - you can find more information about Facebook advertising at http://www.facebook.com/advertising.

February 24, 2010 9:44 AM

Kenneth Dreyer said:

Hi there,

Good article. I have an non-related question: In the image showing all traffic sources, how did you get it to show the number of conversions in the column next to the percentage?

Best regards

February 24, 2010 10:30 AM

Jon said:

Very topical post Ben...!

With all the FB hype recently, I feel like the lone doubter regarding FB as an immediately viable advertising source that can suddenly out perform others in the marketplace. I hope you dont mind another opinion! ;)

My own FB experience has been one of low CPC but poor conversion and more of branding benefit.

E-comm results have generally been poor and resulted in budget allocation moving to other campaigns based around product search.

IMHO unless companies are nurturing the social opportunities completely with fan pages and posting promotions then Facebookers are just not in shopping mode... they're hanging out with friends.

Cheers,
Jon

P.S. Quick note: your ROI assumes a 100% conversion of leads into customers.

February 24, 2010 10:50 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Kenneth: That is an excellent question. There is a tool called the Google Analytics Report Enhancer that will show the number of conversions in your GA reports. If you go to the following blog post, you'll find instructions for installing this tool:

http://tinyurl.com/ReportEnhancer

All the best.

February 24, 2010 11:03 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Jon: Thanks for your reply! We're indeed seeing wins on Facebook in the lead generation space - which is obviously a very different type of sell than E-commerce. So you're right to point out that our ROI depends on the conversion rate of leads into customers (except not 100% in this case), which we're still waiting for confirmation on from the client.

One important number that I didn't share in the post is the actual sale price at ~$3,000. So based on the client's historical back-end conversion rates, they've calculated that a PPC lead (from Google, Yahoo, & MSN until now) averages out to be worth $600 whether it converts or not.

The good news is that we just reached 20 Facebook leads at a cost of $840 (Jan 26-Feb 23), so the ads are definitely generating a response at a healthy cost-per-lead! Now we'll just have to monitor and see if the regular back-end conversion rates hold true for Facebook leads too.

I fully agree with you that Facebook users are not actively shopping, but more so hanging out with friends. The key is to try and reach a very niche market with regular, fresh messaging, like you said "companies [need to be] nurturing the social opportunities completely with fan pages and posting promotions" - excellent advice.

All the best - Ben.

February 24, 2010 11:27 AM

Cyborg Superman said:

We tested targeted ads on FB and had similar experiences as Jon. Although perhaps we were too quick to judge. Now you've got me considering lifetime value. Good post.

March 3, 2010 4:00 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Cyborg Superman: Awesome online alias. Let us know how any future FB experiences pan out for you, especially if you're testing again in the e-commerce space. Cheers - Ben.

March 3, 2010 4:28 PM

MickG said:

Great blog post. Being an adwords advocate and user for over 7 years, I am happy to admit that Facebook advertising is great and is working well, both for me, and my clients. If Adwords works on "WHAT" - then Facebook works on "WHO". Being able to target accurately based on demographics is a massive opportunity. I'm enjoying the variety that a tandem Adwords-Facebook approach brings.

March 11, 2010 4:02 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@MickG: Thanks for your reply. I'm glad to hear that you're also having success with an AdWords+Facebook 1,2 combination. Your AdWords "WHAT" | Facebook "WHO" analogy is a perfect one line summary of Google and FB advertising.

I would also view the Google Content Network as working on the "WHO"...if you haven't already (I'm guessing you have :-), be sure to check out the Google Ad Planner Tool to find laser-targeted placements and reach your "WHO" on Google's Content Network. In the tool, demographics and much more criteria are included in your search for highly relevant AdSense-opted sites.

All the best,
Ben

March 11, 2010 8:43 AM

Alex said:

Great stuff. I mention the blog article on LinkedIn: http://bit.ly/d7My9Y

March 17, 2010 6:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Alex: Thanks! I hope it can help motivate advertisers out there to test FB in a smart way.

March 19, 2010 2:17 PM

Digby said:

Typical advertising company spin.

I think Facebook ads are great.
But the cost per click is just way out of line. They suggest that I bid 90 cents a click to get shown!

That is madness.
Imho more like 5 cents a click would be viable.

Only lawyers offering to do Asbestos claims could justify those sort of costs, or BMW dealers.

August 12, 2010 8:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ Digby:

Thanks for your comment. I definitely understand your take on the CPC that we were getting at $0.86. If you're in an industry with a low transaction value, then you're right, that kind of CPC is going to need a really high accompanying conversion rate to hit your profit margins.

However, in an industry such as those you suggested (of which our client belongs to), I'd be confident spending even more per-click than $0.86 because of the potential pay off. For us, it boils down to managing "what you put in the machine" and "what it gives you back."

Since I originally wrote the post we've had month-over-month lead increases from Facebook at a lower cost-per-lead (CPA). Check it out, right now we're loving Facebook for this client:

Jan: 3 leads @ $50.00
Feb: 20 leads @ $51.00
Mar: 12 leads @ $72.50
Apr: 14 leads @ $64.29
May: 14 leads @ $66.41
Jun: 20 leads @ $45.00
Jul: 46 leads @ $17.16
Aug 1-10: 8 leads @ $37.50

If you're thinking about using Facebook, try this nifty little test that asks questions about the business model and helps you determine if FB is a good fit: www.isfacebookforme.com.

August 13, 2010 6:14 AM

Susan said:

Facebook ads can be useful at time but some things need to be take care while placing ads.
Check this out.
How to target your audience using facebook ads

August 20, 2010 3:09 PM

Mark said:

Great Post not sure if we need to update any of the stats as it has been 12 months since your first post & i would like to know if you know where we could get the latest results on who is now top of the top 3 listed above. My gut feel tells me facebook must be pretty close to taking position 1!

Great Post please keep it going with updated results & outcomes.

January 29, 2011 11:31 PM

Ian Eisenberg said:

Hi, thank you very much. good job.

February 23, 2010 8:06 PM

big g said:

Interesting article, am thinking more and more about what Facebook paid ads can do for me.

Lookign fwd to what other people experiences have been like and what the major considerations are.

February 24, 2010 4:29 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ big g: Thanks for your comment - you can find more information about Facebook advertising at http://www.facebook.com/advertising.

February 24, 2010 9:44 AM

Kenneth Dreyer said:

Hi there,

Good article. I have an non-related question: In the image showing all traffic sources, how did you get it to show the number of conversions in the column next to the percentage?

Best regards

February 24, 2010 10:30 AM

Jon said:

Very topical post Ben...!

With all the FB hype recently, I feel like the lone doubter regarding FB as an immediately viable advertising source that can suddenly out perform others in the marketplace. I hope you dont mind another opinion! ;)

My own FB experience has been one of low CPC but poor conversion and more of branding benefit.

E-comm results have generally been poor and resulted in budget allocation moving to other campaigns based around product search.

IMHO unless companies are nurturing the social opportunities completely with fan pages and posting promotions then Facebookers are just not in shopping mode... they're hanging out with friends.

Cheers,
Jon

P.S. Quick note: your ROI assumes a 100% conversion of leads into customers.

February 24, 2010 10:50 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Kenneth: That is an excellent question. There is a tool called the Google Analytics Report Enhancer that will show the number of conversions in your GA reports. If you go to the following blog post, you'll find instructions for installing this tool:

http://tinyurl.com/ReportEnhancer

All the best.

February 24, 2010 11:03 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Jon: Thanks for your reply! We're indeed seeing wins on Facebook in the lead generation space - which is obviously a very different type of sell than E-commerce. So you're right to point out that our ROI depends on the conversion rate of leads into customers (except not 100% in this case), which we're still waiting for confirmation on from the client.

One important number that I didn't share in the post is the actual sale price at ~$3,000. So based on the client's historical back-end conversion rates, they've calculated that a PPC lead (from Google, Yahoo, & MSN until now) averages out to be worth $600 whether it converts or not.

The good news is that we just reached 20 Facebook leads at a cost of $840 (Jan 26-Feb 23), so the ads are definitely generating a response at a healthy cost-per-lead! Now we'll just have to monitor and see if the regular back-end conversion rates hold true for Facebook leads too.

I fully agree with you that Facebook users are not actively shopping, but more so hanging out with friends. The key is to try and reach a very niche market with regular, fresh messaging, like you said "companies [need to be] nurturing the social opportunities completely with fan pages and posting promotions" - excellent advice.

All the best - Ben.

February 24, 2010 11:27 AM

Cyborg Superman said:

We tested targeted ads on FB and had similar experiences as Jon. Although perhaps we were too quick to judge. Now you've got me considering lifetime value. Good post.

March 3, 2010 4:00 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Cyborg Superman: Awesome online alias. Let us know how any future FB experiences pan out for you, especially if you're testing again in the e-commerce space. Cheers - Ben.

March 3, 2010 4:28 PM

MickG said:

Great blog post. Being an adwords advocate and user for over 7 years, I am happy to admit that Facebook advertising is great and is working well, both for me, and my clients. If Adwords works on "WHAT" - then Facebook works on "WHO". Being able to target accurately based on demographics is a massive opportunity. I'm enjoying the variety that a tandem Adwords-Facebook approach brings.

March 11, 2010 4:02 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@MickG: Thanks for your reply. I'm glad to hear that you're also having success with an AdWords+Facebook 1,2 combination. Your AdWords "WHAT" | Facebook "WHO" analogy is a perfect one line summary of Google and FB advertising.

I would also view the Google Content Network as working on the "WHO"...if you haven't already (I'm guessing you have :-), be sure to check out the Google Ad Planner Tool to find laser-targeted placements and reach your "WHO" on Google's Content Network. In the tool, demographics and much more criteria are included in your search for highly relevant AdSense-opted sites.

All the best,
Ben

March 11, 2010 8:43 AM

Alex said:

Great stuff. I mention the blog article on LinkedIn: http://bit.ly/d7My9Y

March 17, 2010 6:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Alex: Thanks! I hope it can help motivate advertisers out there to test FB in a smart way.

March 19, 2010 2:17 PM

Digby said:

Typical advertising company spin.

I think Facebook ads are great.
But the cost per click is just way out of line. They suggest that I bid 90 cents a click to get shown!

That is madness.
Imho more like 5 cents a click would be viable.

Only lawyers offering to do Asbestos claims could justify those sort of costs, or BMW dealers.

August 12, 2010 8:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ Digby:

Thanks for your comment. I definitely understand your take on the CPC that we were getting at $0.86. If you're in an industry with a low transaction value, then you're right, that kind of CPC is going to need a really high accompanying conversion rate to hit your profit margins.

However, in an industry such as those you suggested (of which our client belongs to), I'd be confident spending even more per-click than $0.86 because of the potential pay off. For us, it boils down to managing "what you put in the machine" and "what it gives you back."

Since I originally wrote the post we've had month-over-month lead increases from Facebook at a lower cost-per-lead (CPA). Check it out, right now we're loving Facebook for this client:

Jan: 3 leads @ $50.00
Feb: 20 leads @ $51.00
Mar: 12 leads @ $72.50
Apr: 14 leads @ $64.29
May: 14 leads @ $66.41
Jun: 20 leads @ $45.00
Jul: 46 leads @ $17.16
Aug 1-10: 8 leads @ $37.50

If you're thinking about using Facebook, try this nifty little test that asks questions about the business model and helps you determine if FB is a good fit: www.isfacebookforme.com.

August 13, 2010 6:14 AM

Susan said:

Facebook ads can be useful at time but some things need to be take care while placing ads.
Check this out.
How to target your audience using facebook ads

August 20, 2010 3:09 PM

Mark said:

Great Post not sure if we need to update any of the stats as it has been 12 months since your first post & i would like to know if you know where we could get the latest results on who is now top of the top 3 listed above. My gut feel tells me facebook must be pretty close to taking position 1!

Great Post please keep it going with updated results & outcomes.

January 29, 2011 11:31 PM

Ian Eisenberg said:

Hi, thank you very much. good job.

February 23, 2010 8:06 PM

big g said:

Interesting article, am thinking more and more about what Facebook paid ads can do for me.

Lookign fwd to what other people experiences have been like and what the major considerations are.

February 24, 2010 4:29 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ big g: Thanks for your comment - you can find more information about Facebook advertising at http://www.facebook.com/advertising.

February 24, 2010 9:44 AM

Kenneth Dreyer said:

Hi there,

Good article. I have an non-related question: In the image showing all traffic sources, how did you get it to show the number of conversions in the column next to the percentage?

Best regards

February 24, 2010 10:30 AM

Jon said:

Very topical post Ben...!

With all the FB hype recently, I feel like the lone doubter regarding FB as an immediately viable advertising source that can suddenly out perform others in the marketplace. I hope you dont mind another opinion! ;)

My own FB experience has been one of low CPC but poor conversion and more of branding benefit.

E-comm results have generally been poor and resulted in budget allocation moving to other campaigns based around product search.

IMHO unless companies are nurturing the social opportunities completely with fan pages and posting promotions then Facebookers are just not in shopping mode... they're hanging out with friends.

Cheers,
Jon

P.S. Quick note: your ROI assumes a 100% conversion of leads into customers.

February 24, 2010 10:50 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Kenneth: That is an excellent question. There is a tool called the Google Analytics Report Enhancer that will show the number of conversions in your GA reports. If you go to the following blog post, you'll find instructions for installing this tool:

http://tinyurl.com/ReportEnhancer

All the best.

February 24, 2010 11:03 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Jon: Thanks for your reply! We're indeed seeing wins on Facebook in the lead generation space - which is obviously a very different type of sell than E-commerce. So you're right to point out that our ROI depends on the conversion rate of leads into customers (except not 100% in this case), which we're still waiting for confirmation on from the client.

One important number that I didn't share in the post is the actual sale price at ~$3,000. So based on the client's historical back-end conversion rates, they've calculated that a PPC lead (from Google, Yahoo, & MSN until now) averages out to be worth $600 whether it converts or not.

The good news is that we just reached 20 Facebook leads at a cost of $840 (Jan 26-Feb 23), so the ads are definitely generating a response at a healthy cost-per-lead! Now we'll just have to monitor and see if the regular back-end conversion rates hold true for Facebook leads too.

I fully agree with you that Facebook users are not actively shopping, but more so hanging out with friends. The key is to try and reach a very niche market with regular, fresh messaging, like you said "companies [need to be] nurturing the social opportunities completely with fan pages and posting promotions" - excellent advice.

All the best - Ben.

February 24, 2010 11:27 AM

Cyborg Superman said:

We tested targeted ads on FB and had similar experiences as Jon. Although perhaps we were too quick to judge. Now you've got me considering lifetime value. Good post.

March 3, 2010 4:00 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Cyborg Superman: Awesome online alias. Let us know how any future FB experiences pan out for you, especially if you're testing again in the e-commerce space. Cheers - Ben.

March 3, 2010 4:28 PM

MickG said:

Great blog post. Being an adwords advocate and user for over 7 years, I am happy to admit that Facebook advertising is great and is working well, both for me, and my clients. If Adwords works on "WHAT" - then Facebook works on "WHO". Being able to target accurately based on demographics is a massive opportunity. I'm enjoying the variety that a tandem Adwords-Facebook approach brings.

March 11, 2010 4:02 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@MickG: Thanks for your reply. I'm glad to hear that you're also having success with an AdWords+Facebook 1,2 combination. Your AdWords "WHAT" | Facebook "WHO" analogy is a perfect one line summary of Google and FB advertising.

I would also view the Google Content Network as working on the "WHO"...if you haven't already (I'm guessing you have :-), be sure to check out the Google Ad Planner Tool to find laser-targeted placements and reach your "WHO" on Google's Content Network. In the tool, demographics and much more criteria are included in your search for highly relevant AdSense-opted sites.

All the best,
Ben

March 11, 2010 8:43 AM

Alex said:

Great stuff. I mention the blog article on LinkedIn: http://bit.ly/d7My9Y

March 17, 2010 6:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Alex: Thanks! I hope it can help motivate advertisers out there to test FB in a smart way.

March 19, 2010 2:17 PM

Digby said:

Typical advertising company spin.

I think Facebook ads are great.
But the cost per click is just way out of line. They suggest that I bid 90 cents a click to get shown!

That is madness.
Imho more like 5 cents a click would be viable.

Only lawyers offering to do Asbestos claims could justify those sort of costs, or BMW dealers.

August 12, 2010 8:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ Digby:

Thanks for your comment. I definitely understand your take on the CPC that we were getting at $0.86. If you're in an industry with a low transaction value, then you're right, that kind of CPC is going to need a really high accompanying conversion rate to hit your profit margins.

However, in an industry such as those you suggested (of which our client belongs to), I'd be confident spending even more per-click than $0.86 because of the potential pay off. For us, it boils down to managing "what you put in the machine" and "what it gives you back."

Since I originally wrote the post we've had month-over-month lead increases from Facebook at a lower cost-per-lead (CPA). Check it out, right now we're loving Facebook for this client:

Jan: 3 leads @ $50.00
Feb: 20 leads @ $51.00
Mar: 12 leads @ $72.50
Apr: 14 leads @ $64.29
May: 14 leads @ $66.41
Jun: 20 leads @ $45.00
Jul: 46 leads @ $17.16
Aug 1-10: 8 leads @ $37.50

If you're thinking about using Facebook, try this nifty little test that asks questions about the business model and helps you determine if FB is a good fit: www.isfacebookforme.com.

August 13, 2010 6:14 AM

Susan said:

Facebook ads can be useful at time but some things need to be take care while placing ads.
Check this out.
How to target your audience using facebook ads

August 20, 2010 3:09 PM

Mark said:

Great Post not sure if we need to update any of the stats as it has been 12 months since your first post & i would like to know if you know where we could get the latest results on who is now top of the top 3 listed above. My gut feel tells me facebook must be pretty close to taking position 1!

Great Post please keep it going with updated results & outcomes.

January 29, 2011 11:31 PM

Ian Eisenberg said:

Hi, thank you very much. good job.

February 23, 2010 8:06 PM

big g said:

Interesting article, am thinking more and more about what Facebook paid ads can do for me.

Lookign fwd to what other people experiences have been like and what the major considerations are.

February 24, 2010 4:29 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ big g: Thanks for your comment - you can find more information about Facebook advertising at http://www.facebook.com/advertising.

February 24, 2010 9:44 AM

Kenneth Dreyer said:

Hi there,

Good article. I have an non-related question: In the image showing all traffic sources, how did you get it to show the number of conversions in the column next to the percentage?

Best regards

February 24, 2010 10:30 AM

Jon said:

Very topical post Ben...!

With all the FB hype recently, I feel like the lone doubter regarding FB as an immediately viable advertising source that can suddenly out perform others in the marketplace. I hope you dont mind another opinion! ;)

My own FB experience has been one of low CPC but poor conversion and more of branding benefit.

E-comm results have generally been poor and resulted in budget allocation moving to other campaigns based around product search.

IMHO unless companies are nurturing the social opportunities completely with fan pages and posting promotions then Facebookers are just not in shopping mode... they're hanging out with friends.

Cheers,
Jon

P.S. Quick note: your ROI assumes a 100% conversion of leads into customers.

February 24, 2010 10:50 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Kenneth: That is an excellent question. There is a tool called the Google Analytics Report Enhancer that will show the number of conversions in your GA reports. If you go to the following blog post, you'll find instructions for installing this tool:

http://tinyurl.com/ReportEnhancer

All the best.

February 24, 2010 11:03 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Jon: Thanks for your reply! We're indeed seeing wins on Facebook in the lead generation space - which is obviously a very different type of sell than E-commerce. So you're right to point out that our ROI depends on the conversion rate of leads into customers (except not 100% in this case), which we're still waiting for confirmation on from the client.

One important number that I didn't share in the post is the actual sale price at ~$3,000. So based on the client's historical back-end conversion rates, they've calculated that a PPC lead (from Google, Yahoo, & MSN until now) averages out to be worth $600 whether it converts or not.

The good news is that we just reached 20 Facebook leads at a cost of $840 (Jan 26-Feb 23), so the ads are definitely generating a response at a healthy cost-per-lead! Now we'll just have to monitor and see if the regular back-end conversion rates hold true for Facebook leads too.

I fully agree with you that Facebook users are not actively shopping, but more so hanging out with friends. The key is to try and reach a very niche market with regular, fresh messaging, like you said "companies [need to be] nurturing the social opportunities completely with fan pages and posting promotions" - excellent advice.

All the best - Ben.

February 24, 2010 11:27 AM

Cyborg Superman said:

We tested targeted ads on FB and had similar experiences as Jon. Although perhaps we were too quick to judge. Now you've got me considering lifetime value. Good post.

March 3, 2010 4:00 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Cyborg Superman: Awesome online alias. Let us know how any future FB experiences pan out for you, especially if you're testing again in the e-commerce space. Cheers - Ben.

March 3, 2010 4:28 PM

MickG said:

Great blog post. Being an adwords advocate and user for over 7 years, I am happy to admit that Facebook advertising is great and is working well, both for me, and my clients. If Adwords works on "WHAT" - then Facebook works on "WHO". Being able to target accurately based on demographics is a massive opportunity. I'm enjoying the variety that a tandem Adwords-Facebook approach brings.

March 11, 2010 4:02 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@MickG: Thanks for your reply. I'm glad to hear that you're also having success with an AdWords+Facebook 1,2 combination. Your AdWords "WHAT" | Facebook "WHO" analogy is a perfect one line summary of Google and FB advertising.

I would also view the Google Content Network as working on the "WHO"...if you haven't already (I'm guessing you have :-), be sure to check out the Google Ad Planner Tool to find laser-targeted placements and reach your "WHO" on Google's Content Network. In the tool, demographics and much more criteria are included in your search for highly relevant AdSense-opted sites.

All the best,
Ben

March 11, 2010 8:43 AM

Alex said:

Great stuff. I mention the blog article on LinkedIn: http://bit.ly/d7My9Y

March 17, 2010 6:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Alex: Thanks! I hope it can help motivate advertisers out there to test FB in a smart way.

March 19, 2010 2:17 PM

Digby said:

Typical advertising company spin.

I think Facebook ads are great.
But the cost per click is just way out of line. They suggest that I bid 90 cents a click to get shown!

That is madness.
Imho more like 5 cents a click would be viable.

Only lawyers offering to do Asbestos claims could justify those sort of costs, or BMW dealers.

August 12, 2010 8:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ Digby:

Thanks for your comment. I definitely understand your take on the CPC that we were getting at $0.86. If you're in an industry with a low transaction value, then you're right, that kind of CPC is going to need a really high accompanying conversion rate to hit your profit margins.

However, in an industry such as those you suggested (of which our client belongs to), I'd be confident spending even more per-click than $0.86 because of the potential pay off. For us, it boils down to managing "what you put in the machine" and "what it gives you back."

Since I originally wrote the post we've had month-over-month lead increases from Facebook at a lower cost-per-lead (CPA). Check it out, right now we're loving Facebook for this client:

Jan: 3 leads @ $50.00
Feb: 20 leads @ $51.00
Mar: 12 leads @ $72.50
Apr: 14 leads @ $64.29
May: 14 leads @ $66.41
Jun: 20 leads @ $45.00
Jul: 46 leads @ $17.16
Aug 1-10: 8 leads @ $37.50

If you're thinking about using Facebook, try this nifty little test that asks questions about the business model and helps you determine if FB is a good fit: www.isfacebookforme.com.

August 13, 2010 6:14 AM

Susan said:

Facebook ads can be useful at time but some things need to be take care while placing ads.
Check this out.
How to target your audience using facebook ads

August 20, 2010 3:09 PM

Mark said:

Great Post not sure if we need to update any of the stats as it has been 12 months since your first post & i would like to know if you know where we could get the latest results on who is now top of the top 3 listed above. My gut feel tells me facebook must be pretty close to taking position 1!

Great Post please keep it going with updated results & outcomes.

January 29, 2011 11:31 PM

Ian Eisenberg said:

Hi, thank you very much. good job.

February 23, 2010 8:06 PM

big g said:

Interesting article, am thinking more and more about what Facebook paid ads can do for me.

Lookign fwd to what other people experiences have been like and what the major considerations are.

February 24, 2010 4:29 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ big g: Thanks for your comment - you can find more information about Facebook advertising at http://www.facebook.com/advertising.

February 24, 2010 9:44 AM

Kenneth Dreyer said:

Hi there,

Good article. I have an non-related question: In the image showing all traffic sources, how did you get it to show the number of conversions in the column next to the percentage?

Best regards

February 24, 2010 10:30 AM

Jon said:

Very topical post Ben...!

With all the FB hype recently, I feel like the lone doubter regarding FB as an immediately viable advertising source that can suddenly out perform others in the marketplace. I hope you dont mind another opinion! ;)

My own FB experience has been one of low CPC but poor conversion and more of branding benefit.

E-comm results have generally been poor and resulted in budget allocation moving to other campaigns based around product search.

IMHO unless companies are nurturing the social opportunities completely with fan pages and posting promotions then Facebookers are just not in shopping mode... they're hanging out with friends.

Cheers,
Jon

P.S. Quick note: your ROI assumes a 100% conversion of leads into customers.

February 24, 2010 10:50 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Kenneth: That is an excellent question. There is a tool called the Google Analytics Report Enhancer that will show the number of conversions in your GA reports. If you go to the following blog post, you'll find instructions for installing this tool:

http://tinyurl.com/ReportEnhancer

All the best.

February 24, 2010 11:03 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Jon: Thanks for your reply! We're indeed seeing wins on Facebook in the lead generation space - which is obviously a very different type of sell than E-commerce. So you're right to point out that our ROI depends on the conversion rate of leads into customers (except not 100% in this case), which we're still waiting for confirmation on from the client.

One important number that I didn't share in the post is the actual sale price at ~$3,000. So based on the client's historical back-end conversion rates, they've calculated that a PPC lead (from Google, Yahoo, & MSN until now) averages out to be worth $600 whether it converts or not.

The good news is that we just reached 20 Facebook leads at a cost of $840 (Jan 26-Feb 23), so the ads are definitely generating a response at a healthy cost-per-lead! Now we'll just have to monitor and see if the regular back-end conversion rates hold true for Facebook leads too.

I fully agree with you that Facebook users are not actively shopping, but more so hanging out with friends. The key is to try and reach a very niche market with regular, fresh messaging, like you said "companies [need to be] nurturing the social opportunities completely with fan pages and posting promotions" - excellent advice.

All the best - Ben.

February 24, 2010 11:27 AM

Cyborg Superman said:

We tested targeted ads on FB and had similar experiences as Jon. Although perhaps we were too quick to judge. Now you've got me considering lifetime value. Good post.

March 3, 2010 4:00 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Cyborg Superman: Awesome online alias. Let us know how any future FB experiences pan out for you, especially if you're testing again in the e-commerce space. Cheers - Ben.

March 3, 2010 4:28 PM

MickG said:

Great blog post. Being an adwords advocate and user for over 7 years, I am happy to admit that Facebook advertising is great and is working well, both for me, and my clients. If Adwords works on "WHAT" - then Facebook works on "WHO". Being able to target accurately based on demographics is a massive opportunity. I'm enjoying the variety that a tandem Adwords-Facebook approach brings.

March 11, 2010 4:02 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@MickG: Thanks for your reply. I'm glad to hear that you're also having success with an AdWords+Facebook 1,2 combination. Your AdWords "WHAT" | Facebook "WHO" analogy is a perfect one line summary of Google and FB advertising.

I would also view the Google Content Network as working on the "WHO"...if you haven't already (I'm guessing you have :-), be sure to check out the Google Ad Planner Tool to find laser-targeted placements and reach your "WHO" on Google's Content Network. In the tool, demographics and much more criteria are included in your search for highly relevant AdSense-opted sites.

All the best,
Ben

March 11, 2010 8:43 AM

Alex said:

Great stuff. I mention the blog article on LinkedIn: http://bit.ly/d7My9Y

March 17, 2010 6:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Alex: Thanks! I hope it can help motivate advertisers out there to test FB in a smart way.

March 19, 2010 2:17 PM

Digby said:

Typical advertising company spin.

I think Facebook ads are great.
But the cost per click is just way out of line. They suggest that I bid 90 cents a click to get shown!

That is madness.
Imho more like 5 cents a click would be viable.

Only lawyers offering to do Asbestos claims could justify those sort of costs, or BMW dealers.

August 12, 2010 8:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ Digby:

Thanks for your comment. I definitely understand your take on the CPC that we were getting at $0.86. If you're in an industry with a low transaction value, then you're right, that kind of CPC is going to need a really high accompanying conversion rate to hit your profit margins.

However, in an industry such as those you suggested (of which our client belongs to), I'd be confident spending even more per-click than $0.86 because of the potential pay off. For us, it boils down to managing "what you put in the machine" and "what it gives you back."

Since I originally wrote the post we've had month-over-month lead increases from Facebook at a lower cost-per-lead (CPA). Check it out, right now we're loving Facebook for this client:

Jan: 3 leads @ $50.00
Feb: 20 leads @ $51.00
Mar: 12 leads @ $72.50
Apr: 14 leads @ $64.29
May: 14 leads @ $66.41
Jun: 20 leads @ $45.00
Jul: 46 leads @ $17.16
Aug 1-10: 8 leads @ $37.50

If you're thinking about using Facebook, try this nifty little test that asks questions about the business model and helps you determine if FB is a good fit: www.isfacebookforme.com.

August 13, 2010 6:14 AM

Susan said:

Facebook ads can be useful at time but some things need to be take care while placing ads.
Check this out.
How to target your audience using facebook ads

August 20, 2010 3:09 PM

Mark said:

Great Post not sure if we need to update any of the stats as it has been 12 months since your first post & i would like to know if you know where we could get the latest results on who is now top of the top 3 listed above. My gut feel tells me facebook must be pretty close to taking position 1!

Great Post please keep it going with updated results & outcomes.

January 29, 2011 11:31 PM

Ian Eisenberg said:

Hi, thank you very much. good job.

February 23, 2010 8:06 PM

big g said:

Interesting article, am thinking more and more about what Facebook paid ads can do for me.

Lookign fwd to what other people experiences have been like and what the major considerations are.

February 24, 2010 4:29 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ big g: Thanks for your comment - you can find more information about Facebook advertising at http://www.facebook.com/advertising.

February 24, 2010 9:44 AM

Kenneth Dreyer said:

Hi there,

Good article. I have an non-related question: In the image showing all traffic sources, how did you get it to show the number of conversions in the column next to the percentage?

Best regards

February 24, 2010 10:30 AM

Jon said:

Very topical post Ben...!

With all the FB hype recently, I feel like the lone doubter regarding FB as an immediately viable advertising source that can suddenly out perform others in the marketplace. I hope you dont mind another opinion! ;)

My own FB experience has been one of low CPC but poor conversion and more of branding benefit.

E-comm results have generally been poor and resulted in budget allocation moving to other campaigns based around product search.

IMHO unless companies are nurturing the social opportunities completely with fan pages and posting promotions then Facebookers are just not in shopping mode... they're hanging out with friends.

Cheers,
Jon

P.S. Quick note: your ROI assumes a 100% conversion of leads into customers.

February 24, 2010 10:50 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Kenneth: That is an excellent question. There is a tool called the Google Analytics Report Enhancer that will show the number of conversions in your GA reports. If you go to the following blog post, you'll find instructions for installing this tool:

http://tinyurl.com/ReportEnhancer

All the best.

February 24, 2010 11:03 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Jon: Thanks for your reply! We're indeed seeing wins on Facebook in the lead generation space - which is obviously a very different type of sell than E-commerce. So you're right to point out that our ROI depends on the conversion rate of leads into customers (except not 100% in this case), which we're still waiting for confirmation on from the client.

One important number that I didn't share in the post is the actual sale price at ~$3,000. So based on the client's historical back-end conversion rates, they've calculated that a PPC lead (from Google, Yahoo, & MSN until now) averages out to be worth $600 whether it converts or not.

The good news is that we just reached 20 Facebook leads at a cost of $840 (Jan 26-Feb 23), so the ads are definitely generating a response at a healthy cost-per-lead! Now we'll just have to monitor and see if the regular back-end conversion rates hold true for Facebook leads too.

I fully agree with you that Facebook users are not actively shopping, but more so hanging out with friends. The key is to try and reach a very niche market with regular, fresh messaging, like you said "companies [need to be] nurturing the social opportunities completely with fan pages and posting promotions" - excellent advice.

All the best - Ben.

February 24, 2010 11:27 AM

Cyborg Superman said:

We tested targeted ads on FB and had similar experiences as Jon. Although perhaps we were too quick to judge. Now you've got me considering lifetime value. Good post.

March 3, 2010 4:00 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Cyborg Superman: Awesome online alias. Let us know how any future FB experiences pan out for you, especially if you're testing again in the e-commerce space. Cheers - Ben.

March 3, 2010 4:28 PM

MickG said:

Great blog post. Being an adwords advocate and user for over 7 years, I am happy to admit that Facebook advertising is great and is working well, both for me, and my clients. If Adwords works on "WHAT" - then Facebook works on "WHO". Being able to target accurately based on demographics is a massive opportunity. I'm enjoying the variety that a tandem Adwords-Facebook approach brings.

March 11, 2010 4:02 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@MickG: Thanks for your reply. I'm glad to hear that you're also having success with an AdWords+Facebook 1,2 combination. Your AdWords "WHAT" | Facebook "WHO" analogy is a perfect one line summary of Google and FB advertising.

I would also view the Google Content Network as working on the "WHO"...if you haven't already (I'm guessing you have :-), be sure to check out the Google Ad Planner Tool to find laser-targeted placements and reach your "WHO" on Google's Content Network. In the tool, demographics and much more criteria are included in your search for highly relevant AdSense-opted sites.

All the best,
Ben

March 11, 2010 8:43 AM

Alex said:

Great stuff. I mention the blog article on LinkedIn: http://bit.ly/d7My9Y

March 17, 2010 6:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Alex: Thanks! I hope it can help motivate advertisers out there to test FB in a smart way.

March 19, 2010 2:17 PM

Digby said:

Typical advertising company spin.

I think Facebook ads are great.
But the cost per click is just way out of line. They suggest that I bid 90 cents a click to get shown!

That is madness.
Imho more like 5 cents a click would be viable.

Only lawyers offering to do Asbestos claims could justify those sort of costs, or BMW dealers.

August 12, 2010 8:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ Digby:

Thanks for your comment. I definitely understand your take on the CPC that we were getting at $0.86. If you're in an industry with a low transaction value, then you're right, that kind of CPC is going to need a really high accompanying conversion rate to hit your profit margins.

However, in an industry such as those you suggested (of which our client belongs to), I'd be confident spending even more per-click than $0.86 because of the potential pay off. For us, it boils down to managing "what you put in the machine" and "what it gives you back."

Since I originally wrote the post we've had month-over-month lead increases from Facebook at a lower cost-per-lead (CPA). Check it out, right now we're loving Facebook for this client:

Jan: 3 leads @ $50.00
Feb: 20 leads @ $51.00
Mar: 12 leads @ $72.50
Apr: 14 leads @ $64.29
May: 14 leads @ $66.41
Jun: 20 leads @ $45.00
Jul: 46 leads @ $17.16
Aug 1-10: 8 leads @ $37.50

If you're thinking about using Facebook, try this nifty little test that asks questions about the business model and helps you determine if FB is a good fit: www.isfacebookforme.com.

August 13, 2010 6:14 AM

Susan said:

Facebook ads can be useful at time but some things need to be take care while placing ads.
Check this out.
How to target your audience using facebook ads

August 20, 2010 3:09 PM

Mark said:

Great Post not sure if we need to update any of the stats as it has been 12 months since your first post & i would like to know if you know where we could get the latest results on who is now top of the top 3 listed above. My gut feel tells me facebook must be pretty close to taking position 1!

Great Post please keep it going with updated results & outcomes.

January 29, 2011 11:31 PM

Ian Eisenberg said:

Hi, thank you very much. good job.

February 23, 2010 8:06 PM

big g said:

Interesting article, am thinking more and more about what Facebook paid ads can do for me.

Lookign fwd to what other people experiences have been like and what the major considerations are.

February 24, 2010 4:29 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ big g: Thanks for your comment - you can find more information about Facebook advertising at http://www.facebook.com/advertising.

February 24, 2010 9:44 AM

Kenneth Dreyer said:

Hi there,

Good article. I have an non-related question: In the image showing all traffic sources, how did you get it to show the number of conversions in the column next to the percentage?

Best regards

February 24, 2010 10:30 AM

Jon said:

Very topical post Ben...!

With all the FB hype recently, I feel like the lone doubter regarding FB as an immediately viable advertising source that can suddenly out perform others in the marketplace. I hope you dont mind another opinion! ;)

My own FB experience has been one of low CPC but poor conversion and more of branding benefit.

E-comm results have generally been poor and resulted in budget allocation moving to other campaigns based around product search.

IMHO unless companies are nurturing the social opportunities completely with fan pages and posting promotions then Facebookers are just not in shopping mode... they're hanging out with friends.

Cheers,
Jon

P.S. Quick note: your ROI assumes a 100% conversion of leads into customers.

February 24, 2010 10:50 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Kenneth: That is an excellent question. There is a tool called the Google Analytics Report Enhancer that will show the number of conversions in your GA reports. If you go to the following blog post, you'll find instructions for installing this tool:

http://tinyurl.com/ReportEnhancer

All the best.

February 24, 2010 11:03 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Jon: Thanks for your reply! We're indeed seeing wins on Facebook in the lead generation space - which is obviously a very different type of sell than E-commerce. So you're right to point out that our ROI depends on the conversion rate of leads into customers (except not 100% in this case), which we're still waiting for confirmation on from the client.

One important number that I didn't share in the post is the actual sale price at ~$3,000. So based on the client's historical back-end conversion rates, they've calculated that a PPC lead (from Google, Yahoo, & MSN until now) averages out to be worth $600 whether it converts or not.

The good news is that we just reached 20 Facebook leads at a cost of $840 (Jan 26-Feb 23), so the ads are definitely generating a response at a healthy cost-per-lead! Now we'll just have to monitor and see if the regular back-end conversion rates hold true for Facebook leads too.

I fully agree with you that Facebook users are not actively shopping, but more so hanging out with friends. The key is to try and reach a very niche market with regular, fresh messaging, like you said "companies [need to be] nurturing the social opportunities completely with fan pages and posting promotions" - excellent advice.

All the best - Ben.

February 24, 2010 11:27 AM

Cyborg Superman said:

We tested targeted ads on FB and had similar experiences as Jon. Although perhaps we were too quick to judge. Now you've got me considering lifetime value. Good post.

March 3, 2010 4:00 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Cyborg Superman: Awesome online alias. Let us know how any future FB experiences pan out for you, especially if you're testing again in the e-commerce space. Cheers - Ben.

March 3, 2010 4:28 PM

MickG said:

Great blog post. Being an adwords advocate and user for over 7 years, I am happy to admit that Facebook advertising is great and is working well, both for me, and my clients. If Adwords works on "WHAT" - then Facebook works on "WHO". Being able to target accurately based on demographics is a massive opportunity. I'm enjoying the variety that a tandem Adwords-Facebook approach brings.

March 11, 2010 4:02 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@MickG: Thanks for your reply. I'm glad to hear that you're also having success with an AdWords+Facebook 1,2 combination. Your AdWords "WHAT" | Facebook "WHO" analogy is a perfect one line summary of Google and FB advertising.

I would also view the Google Content Network as working on the "WHO"...if you haven't already (I'm guessing you have :-), be sure to check out the Google Ad Planner Tool to find laser-targeted placements and reach your "WHO" on Google's Content Network. In the tool, demographics and much more criteria are included in your search for highly relevant AdSense-opted sites.

All the best,
Ben

March 11, 2010 8:43 AM

Alex said:

Great stuff. I mention the blog article on LinkedIn: http://bit.ly/d7My9Y

March 17, 2010 6:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Alex: Thanks! I hope it can help motivate advertisers out there to test FB in a smart way.

March 19, 2010 2:17 PM

Digby said:

Typical advertising company spin.

I think Facebook ads are great.
But the cost per click is just way out of line. They suggest that I bid 90 cents a click to get shown!

That is madness.
Imho more like 5 cents a click would be viable.

Only lawyers offering to do Asbestos claims could justify those sort of costs, or BMW dealers.

August 12, 2010 8:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ Digby:

Thanks for your comment. I definitely understand your take on the CPC that we were getting at $0.86. If you're in an industry with a low transaction value, then you're right, that kind of CPC is going to need a really high accompanying conversion rate to hit your profit margins.

However, in an industry such as those you suggested (of which our client belongs to), I'd be confident spending even more per-click than $0.86 because of the potential pay off. For us, it boils down to managing "what you put in the machine" and "what it gives you back."

Since I originally wrote the post we've had month-over-month lead increases from Facebook at a lower cost-per-lead (CPA). Check it out, right now we're loving Facebook for this client:

Jan: 3 leads @ $50.00
Feb: 20 leads @ $51.00
Mar: 12 leads @ $72.50
Apr: 14 leads @ $64.29
May: 14 leads @ $66.41
Jun: 20 leads @ $45.00
Jul: 46 leads @ $17.16
Aug 1-10: 8 leads @ $37.50

If you're thinking about using Facebook, try this nifty little test that asks questions about the business model and helps you determine if FB is a good fit: www.isfacebookforme.com.

August 13, 2010 6:14 AM

Susan said:

Facebook ads can be useful at time but some things need to be take care while placing ads.
Check this out.
How to target your audience using facebook ads

August 20, 2010 3:09 PM

Mark said:

Great Post not sure if we need to update any of the stats as it has been 12 months since your first post & i would like to know if you know where we could get the latest results on who is now top of the top 3 listed above. My gut feel tells me facebook must be pretty close to taking position 1!

Great Post please keep it going with updated results & outcomes.

January 29, 2011 11:31 PM

Ian Eisenberg said:

Hi, thank you very much. good job.

February 23, 2010 8:06 PM

big g said:

Interesting article, am thinking more and more about what Facebook paid ads can do for me.

Lookign fwd to what other people experiences have been like and what the major considerations are.

February 24, 2010 4:29 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ big g: Thanks for your comment - you can find more information about Facebook advertising at http://www.facebook.com/advertising.

February 24, 2010 9:44 AM

Kenneth Dreyer said:

Hi there,

Good article. I have an non-related question: In the image showing all traffic sources, how did you get it to show the number of conversions in the column next to the percentage?

Best regards

February 24, 2010 10:30 AM

Jon said:

Very topical post Ben...!

With all the FB hype recently, I feel like the lone doubter regarding FB as an immediately viable advertising source that can suddenly out perform others in the marketplace. I hope you dont mind another opinion! ;)

My own FB experience has been one of low CPC but poor conversion and more of branding benefit.

E-comm results have generally been poor and resulted in budget allocation moving to other campaigns based around product search.

IMHO unless companies are nurturing the social opportunities completely with fan pages and posting promotions then Facebookers are just not in shopping mode... they're hanging out with friends.

Cheers,
Jon

P.S. Quick note: your ROI assumes a 100% conversion of leads into customers.

February 24, 2010 10:50 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Kenneth: That is an excellent question. There is a tool called the Google Analytics Report Enhancer that will show the number of conversions in your GA reports. If you go to the following blog post, you'll find instructions for installing this tool:

http://tinyurl.com/ReportEnhancer

All the best.

February 24, 2010 11:03 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Jon: Thanks for your reply! We're indeed seeing wins on Facebook in the lead generation space - which is obviously a very different type of sell than E-commerce. So you're right to point out that our ROI depends on the conversion rate of leads into customers (except not 100% in this case), which we're still waiting for confirmation on from the client.

One important number that I didn't share in the post is the actual sale price at ~$3,000. So based on the client's historical back-end conversion rates, they've calculated that a PPC lead (from Google, Yahoo, & MSN until now) averages out to be worth $600 whether it converts or not.

The good news is that we just reached 20 Facebook leads at a cost of $840 (Jan 26-Feb 23), so the ads are definitely generating a response at a healthy cost-per-lead! Now we'll just have to monitor and see if the regular back-end conversion rates hold true for Facebook leads too.

I fully agree with you that Facebook users are not actively shopping, but more so hanging out with friends. The key is to try and reach a very niche market with regular, fresh messaging, like you said "companies [need to be] nurturing the social opportunities completely with fan pages and posting promotions" - excellent advice.

All the best - Ben.

February 24, 2010 11:27 AM

Cyborg Superman said:

We tested targeted ads on FB and had similar experiences as Jon. Although perhaps we were too quick to judge. Now you've got me considering lifetime value. Good post.

March 3, 2010 4:00 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Cyborg Superman: Awesome online alias. Let us know how any future FB experiences pan out for you, especially if you're testing again in the e-commerce space. Cheers - Ben.

March 3, 2010 4:28 PM

MickG said:

Great blog post. Being an adwords advocate and user for over 7 years, I am happy to admit that Facebook advertising is great and is working well, both for me, and my clients. If Adwords works on "WHAT" - then Facebook works on "WHO". Being able to target accurately based on demographics is a massive opportunity. I'm enjoying the variety that a tandem Adwords-Facebook approach brings.

March 11, 2010 4:02 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@MickG: Thanks for your reply. I'm glad to hear that you're also having success with an AdWords+Facebook 1,2 combination. Your AdWords "WHAT" | Facebook "WHO" analogy is a perfect one line summary of Google and FB advertising.

I would also view the Google Content Network as working on the "WHO"...if you haven't already (I'm guessing you have :-), be sure to check out the Google Ad Planner Tool to find laser-targeted placements and reach your "WHO" on Google's Content Network. In the tool, demographics and much more criteria are included in your search for highly relevant AdSense-opted sites.

All the best,
Ben

March 11, 2010 8:43 AM

Alex said:

Great stuff. I mention the blog article on LinkedIn: http://bit.ly/d7My9Y

March 17, 2010 6:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Alex: Thanks! I hope it can help motivate advertisers out there to test FB in a smart way.

March 19, 2010 2:17 PM

Digby said:

Typical advertising company spin.

I think Facebook ads are great.
But the cost per click is just way out of line. They suggest that I bid 90 cents a click to get shown!

That is madness.
Imho more like 5 cents a click would be viable.

Only lawyers offering to do Asbestos claims could justify those sort of costs, or BMW dealers.

August 12, 2010 8:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ Digby:

Thanks for your comment. I definitely understand your take on the CPC that we were getting at $0.86. If you're in an industry with a low transaction value, then you're right, that kind of CPC is going to need a really high accompanying conversion rate to hit your profit margins.

However, in an industry such as those you suggested (of which our client belongs to), I'd be confident spending even more per-click than $0.86 because of the potential pay off. For us, it boils down to managing "what you put in the machine" and "what it gives you back."

Since I originally wrote the post we've had month-over-month lead increases from Facebook at a lower cost-per-lead (CPA). Check it out, right now we're loving Facebook for this client:

Jan: 3 leads @ $50.00
Feb: 20 leads @ $51.00
Mar: 12 leads @ $72.50
Apr: 14 leads @ $64.29
May: 14 leads @ $66.41
Jun: 20 leads @ $45.00
Jul: 46 leads @ $17.16
Aug 1-10: 8 leads @ $37.50

If you're thinking about using Facebook, try this nifty little test that asks questions about the business model and helps you determine if FB is a good fit: www.isfacebookforme.com.

August 13, 2010 6:14 AM

Susan said:

Facebook ads can be useful at time but some things need to be take care while placing ads.
Check this out.
How to target your audience using facebook ads

August 20, 2010 3:09 PM

Mark said:

Great Post not sure if we need to update any of the stats as it has been 12 months since your first post & i would like to know if you know where we could get the latest results on who is now top of the top 3 listed above. My gut feel tells me facebook must be pretty close to taking position 1!

Great Post please keep it going with updated results & outcomes.

January 29, 2011 11:31 PM

Ian Eisenberg said:

Hi, thank you very much. good job.

February 23, 2010 8:06 PM

big g said:

Interesting article, am thinking more and more about what Facebook paid ads can do for me.

Lookign fwd to what other people experiences have been like and what the major considerations are.

February 24, 2010 4:29 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ big g: Thanks for your comment - you can find more information about Facebook advertising at http://www.facebook.com/advertising.

February 24, 2010 9:44 AM

Kenneth Dreyer said:

Hi there,

Good article. I have an non-related question: In the image showing all traffic sources, how did you get it to show the number of conversions in the column next to the percentage?

Best regards

February 24, 2010 10:30 AM

Jon said:

Very topical post Ben...!

With all the FB hype recently, I feel like the lone doubter regarding FB as an immediately viable advertising source that can suddenly out perform others in the marketplace. I hope you dont mind another opinion! ;)

My own FB experience has been one of low CPC but poor conversion and more of branding benefit.

E-comm results have generally been poor and resulted in budget allocation moving to other campaigns based around product search.

IMHO unless companies are nurturing the social opportunities completely with fan pages and posting promotions then Facebookers are just not in shopping mode... they're hanging out with friends.

Cheers,
Jon

P.S. Quick note: your ROI assumes a 100% conversion of leads into customers.

February 24, 2010 10:50 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Kenneth: That is an excellent question. There is a tool called the Google Analytics Report Enhancer that will show the number of conversions in your GA reports. If you go to the following blog post, you'll find instructions for installing this tool:

http://tinyurl.com/ReportEnhancer

All the best.

February 24, 2010 11:03 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Jon: Thanks for your reply! We're indeed seeing wins on Facebook in the lead generation space - which is obviously a very different type of sell than E-commerce. So you're right to point out that our ROI depends on the conversion rate of leads into customers (except not 100% in this case), which we're still waiting for confirmation on from the client.

One important number that I didn't share in the post is the actual sale price at ~$3,000. So based on the client's historical back-end conversion rates, they've calculated that a PPC lead (from Google, Yahoo, & MSN until now) averages out to be worth $600 whether it converts or not.

The good news is that we just reached 20 Facebook leads at a cost of $840 (Jan 26-Feb 23), so the ads are definitely generating a response at a healthy cost-per-lead! Now we'll just have to monitor and see if the regular back-end conversion rates hold true for Facebook leads too.

I fully agree with you that Facebook users are not actively shopping, but more so hanging out with friends. The key is to try and reach a very niche market with regular, fresh messaging, like you said "companies [need to be] nurturing the social opportunities completely with fan pages and posting promotions" - excellent advice.

All the best - Ben.

February 24, 2010 11:27 AM

Cyborg Superman said:

We tested targeted ads on FB and had similar experiences as Jon. Although perhaps we were too quick to judge. Now you've got me considering lifetime value. Good post.

March 3, 2010 4:00 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Cyborg Superman: Awesome online alias. Let us know how any future FB experiences pan out for you, especially if you're testing again in the e-commerce space. Cheers - Ben.

March 3, 2010 4:28 PM

MickG said:

Great blog post. Being an adwords advocate and user for over 7 years, I am happy to admit that Facebook advertising is great and is working well, both for me, and my clients. If Adwords works on "WHAT" - then Facebook works on "WHO". Being able to target accurately based on demographics is a massive opportunity. I'm enjoying the variety that a tandem Adwords-Facebook approach brings.

March 11, 2010 4:02 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@MickG: Thanks for your reply. I'm glad to hear that you're also having success with an AdWords+Facebook 1,2 combination. Your AdWords "WHAT" | Facebook "WHO" analogy is a perfect one line summary of Google and FB advertising.

I would also view the Google Content Network as working on the "WHO"...if you haven't already (I'm guessing you have :-), be sure to check out the Google Ad Planner Tool to find laser-targeted placements and reach your "WHO" on Google's Content Network. In the tool, demographics and much more criteria are included in your search for highly relevant AdSense-opted sites.

All the best,
Ben

March 11, 2010 8:43 AM

Alex said:

Great stuff. I mention the blog article on LinkedIn: http://bit.ly/d7My9Y

March 17, 2010 6:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Alex: Thanks! I hope it can help motivate advertisers out there to test FB in a smart way.

March 19, 2010 2:17 PM

Digby said:

Typical advertising company spin.

I think Facebook ads are great.
But the cost per click is just way out of line. They suggest that I bid 90 cents a click to get shown!

That is madness.
Imho more like 5 cents a click would be viable.

Only lawyers offering to do Asbestos claims could justify those sort of costs, or BMW dealers.

August 12, 2010 8:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ Digby:

Thanks for your comment. I definitely understand your take on the CPC that we were getting at $0.86. If you're in an industry with a low transaction value, then you're right, that kind of CPC is going to need a really high accompanying conversion rate to hit your profit margins.

However, in an industry such as those you suggested (of which our client belongs to), I'd be confident spending even more per-click than $0.86 because of the potential pay off. For us, it boils down to managing "what you put in the machine" and "what it gives you back."

Since I originally wrote the post we've had month-over-month lead increases from Facebook at a lower cost-per-lead (CPA). Check it out, right now we're loving Facebook for this client:

Jan: 3 leads @ $50.00
Feb: 20 leads @ $51.00
Mar: 12 leads @ $72.50
Apr: 14 leads @ $64.29
May: 14 leads @ $66.41
Jun: 20 leads @ $45.00
Jul: 46 leads @ $17.16
Aug 1-10: 8 leads @ $37.50

If you're thinking about using Facebook, try this nifty little test that asks questions about the business model and helps you determine if FB is a good fit: www.isfacebookforme.com.

August 13, 2010 6:14 AM

Susan said:

Facebook ads can be useful at time but some things need to be take care while placing ads.
Check this out.
How to target your audience using facebook ads

August 20, 2010 3:09 PM

Mark said:

Great Post not sure if we need to update any of the stats as it has been 12 months since your first post & i would like to know if you know where we could get the latest results on who is now top of the top 3 listed above. My gut feel tells me facebook must be pretty close to taking position 1!

Great Post please keep it going with updated results & outcomes.

January 29, 2011 11:31 PM

Ian Eisenberg said:

Hi, thank you very much. good job.

February 23, 2010 8:06 PM

big g said:

Interesting article, am thinking more and more about what Facebook paid ads can do for me.

Lookign fwd to what other people experiences have been like and what the major considerations are.

February 24, 2010 4:29 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ big g: Thanks for your comment - you can find more information about Facebook advertising at http://www.facebook.com/advertising.

February 24, 2010 9:44 AM

Kenneth Dreyer said:

Hi there,

Good article. I have an non-related question: In the image showing all traffic sources, how did you get it to show the number of conversions in the column next to the percentage?

Best regards

February 24, 2010 10:30 AM

Jon said:

Very topical post Ben...!

With all the FB hype recently, I feel like the lone doubter regarding FB as an immediately viable advertising source that can suddenly out perform others in the marketplace. I hope you dont mind another opinion! ;)

My own FB experience has been one of low CPC but poor conversion and more of branding benefit.

E-comm results have generally been poor and resulted in budget allocation moving to other campaigns based around product search.

IMHO unless companies are nurturing the social opportunities completely with fan pages and posting promotions then Facebookers are just not in shopping mode... they're hanging out with friends.

Cheers,
Jon

P.S. Quick note: your ROI assumes a 100% conversion of leads into customers.

February 24, 2010 10:50 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Kenneth: That is an excellent question. There is a tool called the Google Analytics Report Enhancer that will show the number of conversions in your GA reports. If you go to the following blog post, you'll find instructions for installing this tool:

http://tinyurl.com/ReportEnhancer

All the best.

February 24, 2010 11:03 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Jon: Thanks for your reply! We're indeed seeing wins on Facebook in the lead generation space - which is obviously a very different type of sell than E-commerce. So you're right to point out that our ROI depends on the conversion rate of leads into customers (except not 100% in this case), which we're still waiting for confirmation on from the client.

One important number that I didn't share in the post is the actual sale price at ~$3,000. So based on the client's historical back-end conversion rates, they've calculated that a PPC lead (from Google, Yahoo, & MSN until now) averages out to be worth $600 whether it converts or not.

The good news is that we just reached 20 Facebook leads at a cost of $840 (Jan 26-Feb 23), so the ads are definitely generating a response at a healthy cost-per-lead! Now we'll just have to monitor and see if the regular back-end conversion rates hold true for Facebook leads too.

I fully agree with you that Facebook users are not actively shopping, but more so hanging out with friends. The key is to try and reach a very niche market with regular, fresh messaging, like you said "companies [need to be] nurturing the social opportunities completely with fan pages and posting promotions" - excellent advice.

All the best - Ben.

February 24, 2010 11:27 AM

Cyborg Superman said:

We tested targeted ads on FB and had similar experiences as Jon. Although perhaps we were too quick to judge. Now you've got me considering lifetime value. Good post.

March 3, 2010 4:00 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Cyborg Superman: Awesome online alias. Let us know how any future FB experiences pan out for you, especially if you're testing again in the e-commerce space. Cheers - Ben.

March 3, 2010 4:28 PM

MickG said:

Great blog post. Being an adwords advocate and user for over 7 years, I am happy to admit that Facebook advertising is great and is working well, both for me, and my clients. If Adwords works on "WHAT" - then Facebook works on "WHO". Being able to target accurately based on demographics is a massive opportunity. I'm enjoying the variety that a tandem Adwords-Facebook approach brings.

March 11, 2010 4:02 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@MickG: Thanks for your reply. I'm glad to hear that you're also having success with an AdWords+Facebook 1,2 combination. Your AdWords "WHAT" | Facebook "WHO" analogy is a perfect one line summary of Google and FB advertising.

I would also view the Google Content Network as working on the "WHO"...if you haven't already (I'm guessing you have :-), be sure to check out the Google Ad Planner Tool to find laser-targeted placements and reach your "WHO" on Google's Content Network. In the tool, demographics and much more criteria are included in your search for highly relevant AdSense-opted sites.

All the best,
Ben

March 11, 2010 8:43 AM

Alex said:

Great stuff. I mention the blog article on LinkedIn: http://bit.ly/d7My9Y

March 17, 2010 6:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Alex: Thanks! I hope it can help motivate advertisers out there to test FB in a smart way.

March 19, 2010 2:17 PM

Digby said:

Typical advertising company spin.

I think Facebook ads are great.
But the cost per click is just way out of line. They suggest that I bid 90 cents a click to get shown!

That is madness.
Imho more like 5 cents a click would be viable.

Only lawyers offering to do Asbestos claims could justify those sort of costs, or BMW dealers.

August 12, 2010 8:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ Digby:

Thanks for your comment. I definitely understand your take on the CPC that we were getting at $0.86. If you're in an industry with a low transaction value, then you're right, that kind of CPC is going to need a really high accompanying conversion rate to hit your profit margins.

However, in an industry such as those you suggested (of which our client belongs to), I'd be confident spending even more per-click than $0.86 because of the potential pay off. For us, it boils down to managing "what you put in the machine" and "what it gives you back."

Since I originally wrote the post we've had month-over-month lead increases from Facebook at a lower cost-per-lead (CPA). Check it out, right now we're loving Facebook for this client:

Jan: 3 leads @ $50.00
Feb: 20 leads @ $51.00
Mar: 12 leads @ $72.50
Apr: 14 leads @ $64.29
May: 14 leads @ $66.41
Jun: 20 leads @ $45.00
Jul: 46 leads @ $17.16
Aug 1-10: 8 leads @ $37.50

If you're thinking about using Facebook, try this nifty little test that asks questions about the business model and helps you determine if FB is a good fit: www.isfacebookforme.com.

August 13, 2010 6:14 AM

Susan said:

Facebook ads can be useful at time but some things need to be take care while placing ads.
Check this out.
How to target your audience using facebook ads

August 20, 2010 3:09 PM

Mark said:

Great Post not sure if we need to update any of the stats as it has been 12 months since your first post & i would like to know if you know where we could get the latest results on who is now top of the top 3 listed above. My gut feel tells me facebook must be pretty close to taking position 1!

Great Post please keep it going with updated results & outcomes.

January 29, 2011 11:31 PM

Ian Eisenberg said:

Hi, thank you very much. good job.

February 23, 2010 8:06 PM

big g said:

Interesting article, am thinking more and more about what Facebook paid ads can do for me.

Lookign fwd to what other people experiences have been like and what the major considerations are.

February 24, 2010 4:29 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ big g: Thanks for your comment - you can find more information about Facebook advertising at http://www.facebook.com/advertising.

February 24, 2010 9:44 AM

Kenneth Dreyer said:

Hi there,

Good article. I have an non-related question: In the image showing all traffic sources, how did you get it to show the number of conversions in the column next to the percentage?

Best regards

February 24, 2010 10:30 AM

Jon said:

Very topical post Ben...!

With all the FB hype recently, I feel like the lone doubter regarding FB as an immediately viable advertising source that can suddenly out perform others in the marketplace. I hope you dont mind another opinion! ;)

My own FB experience has been one of low CPC but poor conversion and more of branding benefit.

E-comm results have generally been poor and resulted in budget allocation moving to other campaigns based around product search.

IMHO unless companies are nurturing the social opportunities completely with fan pages and posting promotions then Facebookers are just not in shopping mode... they're hanging out with friends.

Cheers,
Jon

P.S. Quick note: your ROI assumes a 100% conversion of leads into customers.

February 24, 2010 10:50 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Kenneth: That is an excellent question. There is a tool called the Google Analytics Report Enhancer that will show the number of conversions in your GA reports. If you go to the following blog post, you'll find instructions for installing this tool:

http://tinyurl.com/ReportEnhancer

All the best.

February 24, 2010 11:03 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Jon: Thanks for your reply! We're indeed seeing wins on Facebook in the lead generation space - which is obviously a very different type of sell than E-commerce. So you're right to point out that our ROI depends on the conversion rate of leads into customers (except not 100% in this case), which we're still waiting for confirmation on from the client.

One important number that I didn't share in the post is the actual sale price at ~$3,000. So based on the client's historical back-end conversion rates, they've calculated that a PPC lead (from Google, Yahoo, & MSN until now) averages out to be worth $600 whether it converts or not.

The good news is that we just reached 20 Facebook leads at a cost of $840 (Jan 26-Feb 23), so the ads are definitely generating a response at a healthy cost-per-lead! Now we'll just have to monitor and see if the regular back-end conversion rates hold true for Facebook leads too.

I fully agree with you that Facebook users are not actively shopping, but more so hanging out with friends. The key is to try and reach a very niche market with regular, fresh messaging, like you said "companies [need to be] nurturing the social opportunities completely with fan pages and posting promotions" - excellent advice.

All the best - Ben.

February 24, 2010 11:27 AM

Cyborg Superman said:

We tested targeted ads on FB and had similar experiences as Jon. Although perhaps we were too quick to judge. Now you've got me considering lifetime value. Good post.

March 3, 2010 4:00 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Cyborg Superman: Awesome online alias. Let us know how any future FB experiences pan out for you, especially if you're testing again in the e-commerce space. Cheers - Ben.

March 3, 2010 4:28 PM

MickG said:

Great blog post. Being an adwords advocate and user for over 7 years, I am happy to admit that Facebook advertising is great and is working well, both for me, and my clients. If Adwords works on "WHAT" - then Facebook works on "WHO". Being able to target accurately based on demographics is a massive opportunity. I'm enjoying the variety that a tandem Adwords-Facebook approach brings.

March 11, 2010 4:02 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@MickG: Thanks for your reply. I'm glad to hear that you're also having success with an AdWords+Facebook 1,2 combination. Your AdWords "WHAT" | Facebook "WHO" analogy is a perfect one line summary of Google and FB advertising.

I would also view the Google Content Network as working on the "WHO"...if you haven't already (I'm guessing you have :-), be sure to check out the Google Ad Planner Tool to find laser-targeted placements and reach your "WHO" on Google's Content Network. In the tool, demographics and much more criteria are included in your search for highly relevant AdSense-opted sites.

All the best,
Ben

March 11, 2010 8:43 AM

Alex said:

Great stuff. I mention the blog article on LinkedIn: http://bit.ly/d7My9Y

March 17, 2010 6:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Alex: Thanks! I hope it can help motivate advertisers out there to test FB in a smart way.

March 19, 2010 2:17 PM

Digby said:

Typical advertising company spin.

I think Facebook ads are great.
But the cost per click is just way out of line. They suggest that I bid 90 cents a click to get shown!

That is madness.
Imho more like 5 cents a click would be viable.

Only lawyers offering to do Asbestos claims could justify those sort of costs, or BMW dealers.

August 12, 2010 8:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ Digby:

Thanks for your comment. I definitely understand your take on the CPC that we were getting at $0.86. If you're in an industry with a low transaction value, then you're right, that kind of CPC is going to need a really high accompanying conversion rate to hit your profit margins.

However, in an industry such as those you suggested (of which our client belongs to), I'd be confident spending even more per-click than $0.86 because of the potential pay off. For us, it boils down to managing "what you put in the machine" and "what it gives you back."

Since I originally wrote the post we've had month-over-month lead increases from Facebook at a lower cost-per-lead (CPA). Check it out, right now we're loving Facebook for this client:

Jan: 3 leads @ $50.00
Feb: 20 leads @ $51.00
Mar: 12 leads @ $72.50
Apr: 14 leads @ $64.29
May: 14 leads @ $66.41
Jun: 20 leads @ $45.00
Jul: 46 leads @ $17.16
Aug 1-10: 8 leads @ $37.50

If you're thinking about using Facebook, try this nifty little test that asks questions about the business model and helps you determine if FB is a good fit: www.isfacebookforme.com.

August 13, 2010 6:14 AM

Susan said:

Facebook ads can be useful at time but some things need to be take care while placing ads.
Check this out.
How to target your audience using facebook ads

August 20, 2010 3:09 PM

Mark said:

Great Post not sure if we need to update any of the stats as it has been 12 months since your first post & i would like to know if you know where we could get the latest results on who is now top of the top 3 listed above. My gut feel tells me facebook must be pretty close to taking position 1!

Great Post please keep it going with updated results & outcomes.

January 29, 2011 11:31 PM

Ian Eisenberg said:

Hi, thank you very much. good job.

February 23, 2010 8:06 PM

big g said:

Interesting article, am thinking more and more about what Facebook paid ads can do for me.

Lookign fwd to what other people experiences have been like and what the major considerations are.

February 24, 2010 4:29 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ big g: Thanks for your comment - you can find more information about Facebook advertising at http://www.facebook.com/advertising.

February 24, 2010 9:44 AM

Kenneth Dreyer said:

Hi there,

Good article. I have an non-related question: In the image showing all traffic sources, how did you get it to show the number of conversions in the column next to the percentage?

Best regards

February 24, 2010 10:30 AM

Jon said:

Very topical post Ben...!

With all the FB hype recently, I feel like the lone doubter regarding FB as an immediately viable advertising source that can suddenly out perform others in the marketplace. I hope you dont mind another opinion! ;)

My own FB experience has been one of low CPC but poor conversion and more of branding benefit.

E-comm results have generally been poor and resulted in budget allocation moving to other campaigns based around product search.

IMHO unless companies are nurturing the social opportunities completely with fan pages and posting promotions then Facebookers are just not in shopping mode... they're hanging out with friends.

Cheers,
Jon

P.S. Quick note: your ROI assumes a 100% conversion of leads into customers.

February 24, 2010 10:50 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Kenneth: That is an excellent question. There is a tool called the Google Analytics Report Enhancer that will show the number of conversions in your GA reports. If you go to the following blog post, you'll find instructions for installing this tool:

http://tinyurl.com/ReportEnhancer

All the best.

February 24, 2010 11:03 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Jon: Thanks for your reply! We're indeed seeing wins on Facebook in the lead generation space - which is obviously a very different type of sell than E-commerce. So you're right to point out that our ROI depends on the conversion rate of leads into customers (except not 100% in this case), which we're still waiting for confirmation on from the client.

One important number that I didn't share in the post is the actual sale price at ~$3,000. So based on the client's historical back-end conversion rates, they've calculated that a PPC lead (from Google, Yahoo, & MSN until now) averages out to be worth $600 whether it converts or not.

The good news is that we just reached 20 Facebook leads at a cost of $840 (Jan 26-Feb 23), so the ads are definitely generating a response at a healthy cost-per-lead! Now we'll just have to monitor and see if the regular back-end conversion rates hold true for Facebook leads too.

I fully agree with you that Facebook users are not actively shopping, but more so hanging out with friends. The key is to try and reach a very niche market with regular, fresh messaging, like you said "companies [need to be] nurturing the social opportunities completely with fan pages and posting promotions" - excellent advice.

All the best - Ben.

February 24, 2010 11:27 AM

Cyborg Superman said:

We tested targeted ads on FB and had similar experiences as Jon. Although perhaps we were too quick to judge. Now you've got me considering lifetime value. Good post.

March 3, 2010 4:00 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Cyborg Superman: Awesome online alias. Let us know how any future FB experiences pan out for you, especially if you're testing again in the e-commerce space. Cheers - Ben.

March 3, 2010 4:28 PM

MickG said:

Great blog post. Being an adwords advocate and user for over 7 years, I am happy to admit that Facebook advertising is great and is working well, both for me, and my clients. If Adwords works on "WHAT" - then Facebook works on "WHO". Being able to target accurately based on demographics is a massive opportunity. I'm enjoying the variety that a tandem Adwords-Facebook approach brings.

March 11, 2010 4:02 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@MickG: Thanks for your reply. I'm glad to hear that you're also having success with an AdWords+Facebook 1,2 combination. Your AdWords "WHAT" | Facebook "WHO" analogy is a perfect one line summary of Google and FB advertising.

I would also view the Google Content Network as working on the "WHO"...if you haven't already (I'm guessing you have :-), be sure to check out the Google Ad Planner Tool to find laser-targeted placements and reach your "WHO" on Google's Content Network. In the tool, demographics and much more criteria are included in your search for highly relevant AdSense-opted sites.

All the best,
Ben

March 11, 2010 8:43 AM

Alex said:

Great stuff. I mention the blog article on LinkedIn: http://bit.ly/d7My9Y

March 17, 2010 6:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Alex: Thanks! I hope it can help motivate advertisers out there to test FB in a smart way.

March 19, 2010 2:17 PM

Digby said:

Typical advertising company spin.

I think Facebook ads are great.
But the cost per click is just way out of line. They suggest that I bid 90 cents a click to get shown!

That is madness.
Imho more like 5 cents a click would be viable.

Only lawyers offering to do Asbestos claims could justify those sort of costs, or BMW dealers.

August 12, 2010 8:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ Digby:

Thanks for your comment. I definitely understand your take on the CPC that we were getting at $0.86. If you're in an industry with a low transaction value, then you're right, that kind of CPC is going to need a really high accompanying conversion rate to hit your profit margins.

However, in an industry such as those you suggested (of which our client belongs to), I'd be confident spending even more per-click than $0.86 because of the potential pay off. For us, it boils down to managing "what you put in the machine" and "what it gives you back."

Since I originally wrote the post we've had month-over-month lead increases from Facebook at a lower cost-per-lead (CPA). Check it out, right now we're loving Facebook for this client:

Jan: 3 leads @ $50.00
Feb: 20 leads @ $51.00
Mar: 12 leads @ $72.50
Apr: 14 leads @ $64.29
May: 14 leads @ $66.41
Jun: 20 leads @ $45.00
Jul: 46 leads @ $17.16
Aug 1-10: 8 leads @ $37.50

If you're thinking about using Facebook, try this nifty little test that asks questions about the business model and helps you determine if FB is a good fit: www.isfacebookforme.com.

August 13, 2010 6:14 AM

Susan said:

Facebook ads can be useful at time but some things need to be take care while placing ads.
Check this out.
How to target your audience using facebook ads

August 20, 2010 3:09 PM

Mark said:

Great Post not sure if we need to update any of the stats as it has been 12 months since your first post & i would like to know if you know where we could get the latest results on who is now top of the top 3 listed above. My gut feel tells me facebook must be pretty close to taking position 1!

Great Post please keep it going with updated results & outcomes.

January 29, 2011 11:31 PM

Ian Eisenberg said:

Hi, thank you very much. good job.

February 23, 2010 8:06 PM

big g said:

Interesting article, am thinking more and more about what Facebook paid ads can do for me.

Lookign fwd to what other people experiences have been like and what the major considerations are.

February 24, 2010 4:29 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ big g: Thanks for your comment - you can find more information about Facebook advertising at http://www.facebook.com/advertising.

February 24, 2010 9:44 AM

Kenneth Dreyer said:

Hi there,

Good article. I have an non-related question: In the image showing all traffic sources, how did you get it to show the number of conversions in the column next to the percentage?

Best regards

February 24, 2010 10:30 AM

Jon said:

Very topical post Ben...!

With all the FB hype recently, I feel like the lone doubter regarding FB as an immediately viable advertising source that can suddenly out perform others in the marketplace. I hope you dont mind another opinion! ;)

My own FB experience has been one of low CPC but poor conversion and more of branding benefit.

E-comm results have generally been poor and resulted in budget allocation moving to other campaigns based around product search.

IMHO unless companies are nurturing the social opportunities completely with fan pages and posting promotions then Facebookers are just not in shopping mode... they're hanging out with friends.

Cheers,
Jon

P.S. Quick note: your ROI assumes a 100% conversion of leads into customers.

February 24, 2010 10:50 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Kenneth: That is an excellent question. There is a tool called the Google Analytics Report Enhancer that will show the number of conversions in your GA reports. If you go to the following blog post, you'll find instructions for installing this tool:

http://tinyurl.com/ReportEnhancer

All the best.

February 24, 2010 11:03 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Jon: Thanks for your reply! We're indeed seeing wins on Facebook in the lead generation space - which is obviously a very different type of sell than E-commerce. So you're right to point out that our ROI depends on the conversion rate of leads into customers (except not 100% in this case), which we're still waiting for confirmation on from the client.

One important number that I didn't share in the post is the actual sale price at ~$3,000. So based on the client's historical back-end conversion rates, they've calculated that a PPC lead (from Google, Yahoo, & MSN until now) averages out to be worth $600 whether it converts or not.

The good news is that we just reached 20 Facebook leads at a cost of $840 (Jan 26-Feb 23), so the ads are definitely generating a response at a healthy cost-per-lead! Now we'll just have to monitor and see if the regular back-end conversion rates hold true for Facebook leads too.

I fully agree with you that Facebook users are not actively shopping, but more so hanging out with friends. The key is to try and reach a very niche market with regular, fresh messaging, like you said "companies [need to be] nurturing the social opportunities completely with fan pages and posting promotions" - excellent advice.

All the best - Ben.

February 24, 2010 11:27 AM

Cyborg Superman said:

We tested targeted ads on FB and had similar experiences as Jon. Although perhaps we were too quick to judge. Now you've got me considering lifetime value. Good post.

March 3, 2010 4:00 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Cyborg Superman: Awesome online alias. Let us know how any future FB experiences pan out for you, especially if you're testing again in the e-commerce space. Cheers - Ben.

March 3, 2010 4:28 PM

MickG said:

Great blog post. Being an adwords advocate and user for over 7 years, I am happy to admit that Facebook advertising is great and is working well, both for me, and my clients. If Adwords works on "WHAT" - then Facebook works on "WHO". Being able to target accurately based on demographics is a massive opportunity. I'm enjoying the variety that a tandem Adwords-Facebook approach brings.

March 11, 2010 4:02 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@MickG: Thanks for your reply. I'm glad to hear that you're also having success with an AdWords+Facebook 1,2 combination. Your AdWords "WHAT" | Facebook "WHO" analogy is a perfect one line summary of Google and FB advertising.

I would also view the Google Content Network as working on the "WHO"...if you haven't already (I'm guessing you have :-), be sure to check out the Google Ad Planner Tool to find laser-targeted placements and reach your "WHO" on Google's Content Network. In the tool, demographics and much more criteria are included in your search for highly relevant AdSense-opted sites.

All the best,
Ben

March 11, 2010 8:43 AM

Alex said:

Great stuff. I mention the blog article on LinkedIn: http://bit.ly/d7My9Y

March 17, 2010 6:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Alex: Thanks! I hope it can help motivate advertisers out there to test FB in a smart way.

March 19, 2010 2:17 PM

Digby said:

Typical advertising company spin.

I think Facebook ads are great.
But the cost per click is just way out of line. They suggest that I bid 90 cents a click to get shown!

That is madness.
Imho more like 5 cents a click would be viable.

Only lawyers offering to do Asbestos claims could justify those sort of costs, or BMW dealers.

August 12, 2010 8:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ Digby:

Thanks for your comment. I definitely understand your take on the CPC that we were getting at $0.86. If you're in an industry with a low transaction value, then you're right, that kind of CPC is going to need a really high accompanying conversion rate to hit your profit margins.

However, in an industry such as those you suggested (of which our client belongs to), I'd be confident spending even more per-click than $0.86 because of the potential pay off. For us, it boils down to managing "what you put in the machine" and "what it gives you back."

Since I originally wrote the post we've had month-over-month lead increases from Facebook at a lower cost-per-lead (CPA). Check it out, right now we're loving Facebook for this client:

Jan: 3 leads @ $50.00
Feb: 20 leads @ $51.00
Mar: 12 leads @ $72.50
Apr: 14 leads @ $64.29
May: 14 leads @ $66.41
Jun: 20 leads @ $45.00
Jul: 46 leads @ $17.16
Aug 1-10: 8 leads @ $37.50

If you're thinking about using Facebook, try this nifty little test that asks questions about the business model and helps you determine if FB is a good fit: www.isfacebookforme.com.

August 13, 2010 6:14 AM

Susan said:

Facebook ads can be useful at time but some things need to be take care while placing ads.
Check this out.
How to target your audience using facebook ads

August 20, 2010 3:09 PM

Mark said:

Great Post not sure if we need to update any of the stats as it has been 12 months since your first post & i would like to know if you know where we could get the latest results on who is now top of the top 3 listed above. My gut feel tells me facebook must be pretty close to taking position 1!

Great Post please keep it going with updated results & outcomes.

January 29, 2011 11:31 PM

Ian Eisenberg said:

Hi, thank you very much. good job.

February 23, 2010 8:06 PM

big g said:

Interesting article, am thinking more and more about what Facebook paid ads can do for me.

Lookign fwd to what other people experiences have been like and what the major considerations are.

February 24, 2010 4:29 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ big g: Thanks for your comment - you can find more information about Facebook advertising at http://www.facebook.com/advertising.

February 24, 2010 9:44 AM

Kenneth Dreyer said:

Hi there,

Good article. I have an non-related question: In the image showing all traffic sources, how did you get it to show the number of conversions in the column next to the percentage?

Best regards

February 24, 2010 10:30 AM

Jon said:

Very topical post Ben...!

With all the FB hype recently, I feel like the lone doubter regarding FB as an immediately viable advertising source that can suddenly out perform others in the marketplace. I hope you dont mind another opinion! ;)

My own FB experience has been one of low CPC but poor conversion and more of branding benefit.

E-comm results have generally been poor and resulted in budget allocation moving to other campaigns based around product search.

IMHO unless companies are nurturing the social opportunities completely with fan pages and posting promotions then Facebookers are just not in shopping mode... they're hanging out with friends.

Cheers,
Jon

P.S. Quick note: your ROI assumes a 100% conversion of leads into customers.

February 24, 2010 10:50 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Kenneth: That is an excellent question. There is a tool called the Google Analytics Report Enhancer that will show the number of conversions in your GA reports. If you go to the following blog post, you'll find instructions for installing this tool:

http://tinyurl.com/ReportEnhancer

All the best.

February 24, 2010 11:03 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Jon: Thanks for your reply! We're indeed seeing wins on Facebook in the lead generation space - which is obviously a very different type of sell than E-commerce. So you're right to point out that our ROI depends on the conversion rate of leads into customers (except not 100% in this case), which we're still waiting for confirmation on from the client.

One important number that I didn't share in the post is the actual sale price at ~$3,000. So based on the client's historical back-end conversion rates, they've calculated that a PPC lead (from Google, Yahoo, & MSN until now) averages out to be worth $600 whether it converts or not.

The good news is that we just reached 20 Facebook leads at a cost of $840 (Jan 26-Feb 23), so the ads are definitely generating a response at a healthy cost-per-lead! Now we'll just have to monitor and see if the regular back-end conversion rates hold true for Facebook leads too.

I fully agree with you that Facebook users are not actively shopping, but more so hanging out with friends. The key is to try and reach a very niche market with regular, fresh messaging, like you said "companies [need to be] nurturing the social opportunities completely with fan pages and posting promotions" - excellent advice.

All the best - Ben.

February 24, 2010 11:27 AM

Cyborg Superman said:

We tested targeted ads on FB and had similar experiences as Jon. Although perhaps we were too quick to judge. Now you've got me considering lifetime value. Good post.

March 3, 2010 4:00 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Cyborg Superman: Awesome online alias. Let us know how any future FB experiences pan out for you, especially if you're testing again in the e-commerce space. Cheers - Ben.

March 3, 2010 4:28 PM

MickG said:

Great blog post. Being an adwords advocate and user for over 7 years, I am happy to admit that Facebook advertising is great and is working well, both for me, and my clients. If Adwords works on "WHAT" - then Facebook works on "WHO". Being able to target accurately based on demographics is a massive opportunity. I'm enjoying the variety that a tandem Adwords-Facebook approach brings.

March 11, 2010 4:02 AM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@MickG: Thanks for your reply. I'm glad to hear that you're also having success with an AdWords+Facebook 1,2 combination. Your AdWords "WHAT" | Facebook "WHO" analogy is a perfect one line summary of Google and FB advertising.

I would also view the Google Content Network as working on the "WHO"...if you haven't already (I'm guessing you have :-), be sure to check out the Google Ad Planner Tool to find laser-targeted placements and reach your "WHO" on Google's Content Network. In the tool, demographics and much more criteria are included in your search for highly relevant AdSense-opted sites.

All the best,
Ben

March 11, 2010 8:43 AM

Alex said:

Great stuff. I mention the blog article on LinkedIn: http://bit.ly/d7My9Y

March 17, 2010 6:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@Alex: Thanks! I hope it can help motivate advertisers out there to test FB in a smart way.

March 19, 2010 2:17 PM

Digby said:

Typical advertising company spin.

I think Facebook ads are great.
But the cost per click is just way out of line. They suggest that I bid 90 cents a click to get shown!

That is madness.
Imho more like 5 cents a click would be viable.

Only lawyers offering to do Asbestos claims could justify those sort of costs, or BMW dealers.

August 12, 2010 8:56 PM

Ben Ronnenberg, PPC Specialist Author Profile Page said:

@ Digby:

Thanks for your comment. I definitely understand your take on the CPC that we were getting at $0.86. If you're in an industry with a low transaction value, then you're right, that kind of CPC is going to need a really high accompanying conversion rate to hit your profit margins.

However, in an industry such as those you suggested (of which our client belongs to), I'd be confident spending even more per-click than $0.86 because of the potential pay off. For us, it boils down to managing "what you put in the machine" and "what it gives you back."

Since I originally wrote the post we've had month-over-month lead increases from Facebook at a lower cost-per-lead (CPA). Check it out, right now we're loving Facebook for this client:

Jan: 3 leads @ $50.00
Feb: 20 leads @ $51.00
Mar: 12 leads @ $72.50
Apr: 14 leads @ $64.29
May: 14 leads @ $66.41
Jun: 20 leads @ $45.00
Jul: 46 leads @ $17.16
Aug 1-10: 8 leads @ $37.50

If you're thinking about using Facebook, try this nifty little test that asks questions about the business model and helps you determine if FB is a good fit: www.isfacebookforme.com.

August 13, 2010 6:14 AM

Susan said:

Facebook ads can be useful at time but some things need to be take care while placing ads.
Check this out.
How to target your audience using facebook ads

August 20, 2010 3:09 PM

Mark said:

Great Post not sure if we need to update any of the stats as it has been 12 months since your first post & i would like to know if you know where we could get the latest results on who is now top of the top 3 listed above. My gut feel tells me facebook must be pretty close to taking position 1!

Great Post please keep it going with updated results & outcomes.

January 29, 2011 11:31 PM

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